Sovereign bond-backed securities (SBBS) are defined as securities with varying levels of seniority backed by a diversified portfolio of euro-denominated central government bonds. Because they are created through private contracts, SBBS do not mutualise sovereign risks, as each government would remain responsible for servicing its own debt obligations. This report summarises the findings of an ESRB High-Level Task Force on the feasibility and impact of creating a market for SBBS as a tool to enhance financial stability. The technical findings are based on analytical work and insights from market participants and other stakeholders. The Task Force’s report represents the outcome of these analyses and discussions, without necessarily reflecting individual views on all aspects or pre-judging future decision-making on SBBS. This volume of the report conveys the Task Force’s main findings; Volume II contains the analysis underpinning those findings.[…]