The fragile edifice of sovereign debt

Systemic, contagious sovereign crises seem to have been consigned to history. Governments can raise funds more cheaply than ever and investor demand seems insatiable. But the banking sector remains a source of instability and new threats are emerging, such as trade wars. Is complacency the biggest threat of all?

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ECR SPECIAL

This is a golden age for sovereign borrowers and debt managers. They can borrow more cheaply, in greater size and at longer maturities than ever before. 

In August, the yield on UK 10- and 30-year gilts fell to new record lows, despite the uncertainty surrounding Brexit.

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