Standing in the way of a debt deal in Athens is the ECB's refusal to take a hit on its stash of...

|By:, SA News Editor

Standing in the way of a debt deal in Athens is the ECB's refusal to take a hit on its stash of Greek paper. Should the ECB not take a loss, it could set a precedent that private bondholders have to stand in line behind the central bank for repayment on sovereign bonds. Such subordination could be a bigger threat to government bond markets than the default.