“Bonds Don’t Bring Breakups, Banks Do”; UBS Says Europe Risks Bank Runs On Grexit

Thursday, April 16, 2015
By Paul Martin

by Tyler Durden
ZeroHedge.com
04/15/2015

“Financial markets are treating the risks around Greek exit with too little regard for the probable dangers,” UBS says. Put simply, bond yields don’t matter, meaning that ECB-controlled sovereign spreads can’t possibly be taken as a serious indicator when it comes to assessing the contagion risk from a possible Grexit. What matters are bank runs because to the degree depositors feel that redenomination risk is real, everything else goes out the window and the lines start to form at the doors of periphery banks.

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