Looming 'junk' wave threatens Europe's financial system - ESRB
Share:
FRANKFURT (Reuters) - The European Union's financial system may not cope on its own with a looming wave of credit rating downgrades caused by the coronavirus pandemic, which may disrupt funding markets, the bloc's financial stability watchdog said on Thursday.The European Systemic Risk Board (ESRB) said the European market for high-yield bonds is too small to absorb a raft of downgrades to "junk" comparable to the one in the last financial crisis and warned about the knock-on for banks, insurers..