Buyers hold back from purchasing certain securities. – The term was used frequently, especially in connection with the Greek and Irish crises. Although the government bonds of both countries were yielding comparatively high returns (because their prices had fallen markedly), there was virtually no demand for them. This was because potential buyers feared high losses in the event of a possible debt restructuring of these countries; especially since there were also public calls for holders of government bonds in general to participate more strongly in the restructuring of a country in the future. – See moral hazard, stabilization mechanism, European, redistribution, central bank-initiated, forced convertible bond.

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/

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