Required reading this morning from Gillian Tett:
Somewhere in the bowels of the mighty European Central Bank, there is a number that many investors would give a lot of euros to see.
It refers to the volume of Greek government bonds that are now sitting in the ECB’s coffers, after being lodged there by European banks through central bank repo operations.
Sadly, the ECB considers this number far too “sensitive” to release, even after a delay. Nevertheless, as fears about sovereign risk rise, those hidden data are assuming ever-greater importance.
In an increasingly illiquid secondary market for bonds, it matters greatly who is holding the Greek stock. They might have trouble reselling – especially if ratings downgrades continue, imperilling the eligibility of Greek bonds for the ECB. Read more
Chris Giles
Michael Steen
Robin Harding
Ralph Atkins
Claire Jones
