Markets Brace for Poor Developments

The US dollar is broadly higher against most of the major and emerging market currencies amid concern that the Greek PSI will not see sufficient participation to avoid the triggering of the collective action clauses or worse. At the same…

The Tragedy that is Spain

The devolution in Spain is particularly troubling. The new fiscal compact had just been signed last week, which includes somewhat more rigorous fiscal rule and enforcement, when Spain's PM Rajoy revealed that this year's deficit would come…

Why Portugal

Portugal's aid package assumes it can return to the capital markets in the second half of last year. This seems less likely with each passing day.

Greek Default Risks Remain

The official creditors won the battle. Greece will be given the money so that they can service their debts. They will have an EC task force embedded into Greece to push for compliance and the escrow-like account ensures a priority to debt…

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