In 2016, the ESRB General Board agreed that the pooling and tranching of cross-border portfolios of national sovereign bonds represents an interesting and attractive approach that could contribute to the ESRB’s objectives. On this basis, the General Board commissioned a High-Level Task Force on Safe Assets, chaired by Philip R. Lane, Governor of the Central Bank of Ireland, to investigate the practical considerations relating to sovereign bond-backed securities (SBBS).
The outcome of the Task Force’s investigation is published in a report comprising two volumes. The first volume conveys the Task Force’s main findings; the second contains the technical analysis underpinning those findings. In addition, the ESRB has published a series of working papers related to SBBS.
The publication of the report and working papers is intended to inform wider policy discussions on the feasibility and impact of creating a market for SBBS as a tool to enhance financial stability.