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According to a study by the OECD sovereign debt crisis are announced by high fees charged by the investment banks placing the sovereign bonds. So in the view of latest sovereign issues, especially from Eastern Europe which had enormous fees charged, and that for example Deutsche Bank's Q1 profits were mainly driven by bond issuance (although both, sovereign and corporate), is the next crisis underway and if so where?
And what about if sovereigns,a s pointed out in a previous post, do not find enough buyers.
What role do government guaranteed bonds play, do we have to include their fee spreads in the equation?
Very disturbing outlook.
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