Tuesday, June 5, 2007

ECB's Trichet warns of credit market vulnerability

(Reuters) - European Central Bank president Jean-Claude Trichet warned on Tuesday that credit markets face three vulnerabilities that could trigger an upset to robust global growth and soaring financial markets.

Low risk premia on debt instruments, the explosion of unregulated hedge funds and private equity firms combined with their widespread use of complex new credit derivative instruments form a "triangle of vulnerability", Trichet told international bankers at a conference.


Read more at Reuters Africa

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