Who will step up to buy Portugal’s government bonds when the European Central Bank stops? We think it’s a good question as pressure on Portugal to take a bail-out continues. The answer is an ominous silence.
...
One last thing. The more Portuguese debt that is held by domestic investors and the ECB, the easier it is eventually going to be to restructure those holdings, and (perhaps) substitute collateralised bonds from the European financial stability facility, the eurozone rescue fund. in Portugal’s broken debt market By Joseph Cotterill Published at FT.com / Markets