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
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