# Professor Stijn Van Nieuwerburgh's work on European Safe Bonds is featured

1 Faculty News February 1, 2018 ![The Economist logo](/sites/default/files/styles/246w/public/assets/images/uat_025662.jpg?itok=1_MW1PTy)>

Excerpt from [The Economist](https://www.economist.com/news/finance-and-economics/21736157-ingenious-proposal-end-banks-dangerous-reliance-domestic-sovereign-bonds) -- "This week’s proposal—for a new asset, sovereign-bond-backed securities (SBBS)—both leaves states responsible for their own debts and encourages banks to diversify sovereign risk. Issuers of SBBS, which could be public- or private-sector entities, would buy euro-area government bonds at market prices, and repackage them. Buyers of SBBS would be paid interest and principal (and be exposed to default) as if they owned the underlying bonds."

[Read more](https://www.economist.com/news/finance-and-economics/21736157-ingenious-proposal-end-banks-dangerous-reliance-domestic-sovereign-bonds)