What does "price crunch" mean in this quote?

Seventy percent of respondents said they had altered their allocations in regard to euro-denominated assets, and.a third of the respondents said they were most worried about corrections in government debt of various European countries. The potential price crunch could knock down the value of their holdings and leave them with losses of potentially billions of dollars.

Source: http://www.marketwatch.com/story/even-after-brexit-central-banks-prefer-pounds-over-Euros-survey-2017-04-03

1 Answer 1


The central bankers are afraid that Euro denominated debt will drop in price and thus the debt they hold (which is an asset on their balance sheet) will drop in price and could make them able to loan less money. (Via the money loaned to reserves requirements.)


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