Zero-E Asset Management is a concept of creating fixed assets in the form of zero-e assets. These assets will be purchased by European governments and other institutions, but the role of these entities is to hold these assets as guarantees for loan repayments. The fact that these assets will be government or public enterprises, they will become asset categories with features that are unique, as the returns they can receive are very low, and they cannot be exploited by creditors.
Financial Zero-E Assets
The zero-a financial instrument and the way it works is that a certain amount of financial assets, mostly bonds, will be created and then held as financial assets by the institutions creating them 0 euro souvenir. In case the borrower defaults on its payments, zero-e assets will be seized by the creditor.
This can happen if, for example, the borrower is not able to meet its bond payments. In such cases, the financial institution that creates the zero-e asset class will seize the bonds and sell them to the highest bidder on the market.
This transaction will give the creditor the financial gain it was expecting; after all, when the financial institution sells the bonds, it incurs a loss. If the price of the bond is lower than the amount of the investment, the creditor will not make the sale, and will instead pass the loss to the borrower of the bond.
There are two types of zero-e assets: financial and security. The financial form is much more liquid and provides better returns (since it is sold easily), and security form, on the other hand, does not give such good returns and is much more difficult to liquidate. This is the reason why financial institutions create them. As for the definition of zero-e assets, it means financial assets that have been created through a loan or borrowing of public funds.