(BN) EU Proposes Hungary Aid Freeze, Prompting Spending-Cut Plan
I missed this earlier. When will one of these countries seriously seek alternatives to playing this game. How many fingers does the ECB have? I only ask because they are trying to plug so many dykes you have to wonder how many fingers they really have? And just how many middle fingers do they have, […]
(ANA) Greek govt to safeguard small bond investors
Small investors are fine. Central Banks are fine. Will individual investors have to swap their bonds to the same ones the central banks hold to avoid CAC, or will the CAC rule be written to exempt them from CACS, or are they just making this up as they go along? It is all very confusing. […]
If 4 Letters Don’t Work, Lets Try 5
I missed in all the excitement that the ESBPF had been officially created. This is the European Sovereign Bond Protection Facility. http://www.esbpf.eu/
Looking For An Upside Surprise To The Home Sales Number
I’m looking for an upside surprise to the home sales number. According to Bloomberg the average estimate is for 4.66M. That seems low. It is barely above last year’s number, and since half the northeast was locked indoors for part of the month, I find it hard to believe that the seasonal adjustment won’t have a much bigger impact. […]
The Junk ETF Phenomenon
This is a graph of the shares outstanding of the JNK ETF. The HYG ETF chart looks similar. There is a long term shift into fixed income ETF’s. As I have written about before, it is the easiest time ever to allocate assets to fixed income, and shift assets within the fixed income allocation. The ETF’s have played a large […]
A Breather And Some Time To Sort Through Some Details…
Details continue to leak out, making it somewhat easier to analyze what is coming out of Europe. It looks like the ECB and National Central Banks will get preferential treatment. The ECB has already allegedly exchanged their bonds for new ones, though I don’t see a reduction in notional of existing bonds – which could […]
It Is Probably Obvious, But Greek Privatizations Are Dead
Who other than a country would buy anything from the Greek government that couldn’t be moved off-shore. Remember they were going to privatize some assets. The number of bidders is dropping as who would possibly want to take the risk that they change the laws retroactively.
(BN) Dallara Tells BBC CDS Triggers Would Hurt Greek Bondholders Deal
Check out some of the excerpts of this on ZeroHedge. In any case, Rule number one of staying up all night and doing things you regret, is to lie in bed the whole next day and ignore your phone and hope people forget what you did. Rule number 2 is not to go on TV […]
(BN) Greece Seeks Minimum 66% Debt Swap Participation, WSJ Says
Here is the story. So is it 66% of debt including the ECB’s holdings? That at least is in ballpark, but the IMF report that caused so much trouble over the weekend assumed 95%, but clearly of non-ECB holdings. Maybe this is just a simple miscommunication. On the other hand, the special committee set up […]
The Only Possible Explanation For Greece Focusing On 66%
Is that they somehow still benchmark it off the entire holdings and not the ECB holdings which everyone else now considers senior? Maybe it is 66% of a much higher base? But even that seems a bit odd.
