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Ecb Balance Sheet Signals Sinking Quality Of Credit Collateral

The Prudent Investor | Thu, 01/24/2008 - 12:15pm |  Add a comment

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Rising tensions in the Eurozone banking system begin to show in the balance sheet of the ECB. Checking the latest weekly financial statement of the ECB one notes shifts in the asset positions that may indicate that the ECB is taking on more subprime collateral that would not be accepted in the regular repos.
While those positions where lower grade collateral can be hidden are growing at sometimes alarming rates, the Eurozone central banks have been salting away their best performing asset with undiminished fervor.
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