Consent Needed for Debt Repayments
What people don’t realize is that what happened in Iceland has been used as a test case for what’s happening in Greece and what’s happening in Europe, and maybe what happens in the United States
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Browsing Tag
default
The date when it was first obvious that Greece would default: a timeline of the Greek debt crisis
I was going through my archives to figure out when I first started saying Greece would default and it made for interesting reading as a chronology of the sovereign debt crisis. For me, the pivotal post that signalled default was inevitable…
On the CDS market, the Greek referendum and US banks’ selling insurance
There is much truth to the generalization that European banks took on direct exposure to European sovereigns through the bond market, while top banks took exposure through selling insurance, primarily CDS, on the sovereigns. The latest BIS…
Contagion: Sovereign Credit Default Swap Wideners – Guess Who?
This chart from Credit Market Analysis shows the sovereign bonds which had the greatest percentage increase in their default probability over a 5-year horizon.
Greek referendum could mean CDS Greek default trigger
Given Greek sentiment, in all likelihood, a referendum vote for the bailout agreement will fail. The question is “what then?” I would anticipate that, at a minimum, an an actual default which triggers credit default swaps with higher…
Video: The Euro Bailout Explained
For those of you wondering what's just happened in Europe, here is an animated explanation.
Greek credit default swap shenanigans
The big question–apart from how many investors they will get to go along with this, given that they couldn’t reach their target of 90% investor participation when the write-down was only going to be 21%–is whether this will trigger a CDS…
Greece just got a debt jubilee. Who’s next?
I see this deal as a quid pro quo for the banks getting recaps in exchange for writedowns. Because it is a negotiated agreement of a sort of payment in kind, it isn't really clear if the banks are being made whole (as compared to a…
Sarkozy: Greece should never have been allowed into the euro zone
The French paper L’Express live-blogged the event and I just wanted to fill you in on the critical passage right at the outset of the interview that everyone has been talking about regarding the Greek default, the CDS and the euro. My…
To Forgive is Divine
Markets rallied strongly in response to the European developments. Yet it is an exaggeration to think that risk appetites returned as the whole month of October has seen equities, emerging markets, commodities and foreign currencies trend…