Italian and French banks revive ‘doom loop’ fears

Exposure to own countries’ sovereign debt reawakens concern over faultline in Europe’s monetary union. 

At that time, banks’ vast domestic sovereign debt exposure created a “doom loop”, as a vicious circle between private sector lenders and governments weakened each other and ultimately threatened the existence of the single currency zone.

“carry trade”

FT 6 April 2021


https://www.ft.com/content/fde7833a-8283-45b8-97ae-9104e1c974cd

Carry-Trade Losses Smash Records Amid Mad Dash Into Dollars




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