The Traderszone Network

Published in TZ Latest News 19 February, 2015 by The TZ Newswire Staff

Central Bankers’ Worst Nightmares Are Unfolding in Greece

The situation in Greece boil down to the single most important issue for the finacial system, namely collateral.

 

Modern financial theory dictates that sovereign bonds are the most “risk free” assets in the financial system (equity, municipal bond, corporate bonds, and the like are all below sovereign bonds in terms of risk profile). The reason for this is because it is far more likely for a company to go belly up than a country.

 

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