Noyer and Draghi, Consider WyploszBy
Still, it is not clear today—in a world of abundant liquidity, low interest rates and historically low spreads—that markets are correctly evaluating the risks linked to the explosion in derivatives and leveraged operations over the last five years, Noyer cautioned. The risk of default somewhere in the chain of borrowers is “always possible” especially if the cost of liquidity rises.
To continue reading this article you must be a Bloomberg Professional Service Subscriber.
If you believe that you may have received this message in error please let us know.