Salient to Investors:

The Bank for International Settlements said government bonds losing their risk-free status are depriving investors of wealth-preservation opportunities while Europe’s debt crisis boosts demand for havens. The global pool of safer assets has shrunk just as demand has risen due to a flight to safety, leading to a major shortage of safe assets in the global financial system – The deterioration in the perceived creditworthiness of a sovereign raises the funding costs of virtually all private borrowers in its jurisdiction.

Germany is the only euro currency nation with a stable outlook on its AAA rating.

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