Echoing many of his less-than-impressed fellow Germans, the chief executive officer of insurer Allianz SE laid into both the ECB and Draghi last week. And as the chart below shows, there’s no evidence of the link between Italy’s banks and its sovereign debt being broken. This so-called “doom loop” between sovereign debt and banks was a big fault-line during the the euro crisis earlier this decade. Ireland, Spain and Portugal have even managed to achieve mainstream bond market status, with negative yields on debt out to nearly 10 years in maturity. Marcus Ashworth is a Bloomberg Opinion columnist covering European markets.

Source: Washington Post October 07, 2019 06:56 UTC