How Europe’s Rescue Vehicle Could Destabilize French Debt
On Wednesday I noted that France’s low borrowing costs were probably unsustainable given the country’s deteriorating economic fundamentals (see here). I also pointed out that one of the reasons...
View ArticleMario Draghi Contradicts Terms Of Bond Buying Program
Early last month the ECB promised to participate on equal standing with private creditors regarding any sovereign debt purchased as part of its new bond buying program: “The Eurosystem intends to...
View ArticleStudents Laugh At Spanish Finance Minister During Speech
In a previous piece I noted that Mario Draghi essentially admitted yesterday in a speech in Slovenia that the ECB would not be participating on equal footing with private creditors should the central...
View ArticleESM Is Official, Spain Is Broke, and Moody’s Is Negative
Congratulations are in order: the eurozone inaugurated the European Stability Mechanism (ESM) Monday. Here’s Eurogroup president and ESM Board Chairman Jean-Claude Juncker: “The euro area is now...
View ArticleIMF: Realistically, Eurozone Banks Need To Sell 4.5 Trillion In Assets
On Wednesday, CNBC ran a piece with the headline “IMF Singles Out European Debt Crisis As Key Threat.” Perhaps realizing that this headline is akin to saying something rather indisputable and thus...
View ArticleS&P Downgrades Spain: One Level Above Junk
S&P may have just pushed Spain over the edge. The ratings agency, which is on a roll lately after accusing the Swiss National Bank of exacerbating the divide between the eurozone periphery and core...
View ArticleHey Markit, Time To Get Creative: Sovereign CDS Market Collapses Under New Law
A few weeks ago I wrote a piece outlining Markit Group’s plan to include make believe CDS in one of its CDS indices. Essentially, a sharp downturn in CDS volume has made it difficult for Markit to find...
View ArticleJapan Set To Replace China As Number One U.S. Creditor
Last month, S&P drew the ire of the Swiss National Bank (SNB) when the ratings agency accused the SNB of exacerbating the divide between the eurozone periphery and the eurozone core by funneling...
View ArticleEurozone Debt Crisis Back In Focus: Greece Slides Further
Recent events in Greece have made it abundantly clear that the eurozone debt crisis will continue to weigh on sentiment for quite some time. Last Thursday the IMF confirmed what many already suspected:...
View ArticleDebt Crisis Complacency: Mistaking Traders For Investors
A few days ago Morgan Stanley analyst Gregory Peters described the eurozone debt crisis as a “repeating cycle of Crisis, Response, Improvement, Complacency.” Don’t look now, but we are squarely in...
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