Reports Are Either Wrong Or This Is A Bad Deal For Greece
If the ECB switches 50 billion of old bonds for 50 billion of new bonds, what does Greece get? No notional reduction. Possibly a reduction in interest payments but that depends on the coupons on the bonds the ECB owns. The new bonds allegedly have some covenants and possibly other projections for the bond holders. […]
*ECB TO DISTRIBUTE PROFIT FROM SWAP TO GOVERNMENTS, WELT SAY
*ECB TO DISTRIBUTE PROFIT FROM SWAP TO GOVERNMENTS, WELT SAYS Either someone has had too much schnapps or the ECB should start charging 2 and 20 because who else can buy bonds at 80, ride them down to 25 and claim they made a profit. +——————————————————————————+ BFW 02/16 16:37 ECB Swapping Greek […]
*WELT: ECB SWAPPING EST. EU50 BLN GREEK BONDS AT NOMINAL VALUE
*WELT: ECB SWAPPING EST. EU50 BLN GREEK BONDS AT NOMINAL VALUE What do they mean by “nominal value”? Are they getting out without haircut to make it easier to default on old bonds that don’t play nice? At least Draghi doing something. He has power and seems to get it – maybe he […]
(BN) *GREEK DEBT SEEN BY TROIKA AT 129% OF GDP BY 2020
They couldn’t predict January budget shortfall within a billion, but yeah, they’ve got it all figured out until 2020. The market seems to be rallying on headlines that Europe is back to progressing on the bailout and some decent economic news. They haven’t prepared for default, so they aren’t about to announce it yet, but […]
(BFW) German MOF: Bridge Loan For Greece Off The Table: Dow Jones
I’m not sure it was ever on the table, but who knows. With all the headlines it is time to redo my line-up card of European headline makers. I would hate to buy stocks on the back of a headline from the Greek minister of agriculture (he did spook the markets last year with a […]
(BN) *DE JAGER PREFERS TO KEEP GREECE IN EURO ZONE IF ORDERLY DEFAULT
Finally! An “orderly” default and remaining in Eurozone. Why didn’t they think of this before? +——————————————————————————+ BN 02/16 14:59 *DUTCH FINANCE MINISTER DE JAGER DISCUSSES GREECE IN PARLIAMENT BN 02/16 14:58 *DE JAGER PREFERS TO KEEP GREECE IN EURO ZONE IF ORDERLY DEFAULT BN 02/16 14:55 *DE JAGER: ORDERLY DEFAULT SCENARIO ALSO […]
MS vs JEF
If Moody’s follows through with their threat of downgrading Morgan Stanley to BBB, they will have the same rating as Jefferies. That rating is tough for a bank with a big balance sheet to carry. People got concerned about JEF and they had a small balance sheet, were able to take it down quickly, and […]
A Couple Points On The Economic Data…
As I mentioned earlier this week (pointed out by Joe Brusuelas), the housing starts were going to be good. The weather was so good, that more builders were able to start projects. There is a big seasonal adjustment factor at work. Rather than taking this as a sign of strength, you are better off assuming […]
From Knight – Some Debt At Some Banks May Become Junk
The people at Knight put together a comprehensive list of potential ratings for banks in Europe after Moody’s came out with their outlooks. I agree that banks getting shifted to non-investment grade is a big deal. We saw the impact for Portugal once it got taken out of the indices, and I think for banks […]
A Pound Of Flesh. An AAPL A Day. Cheap HYG Vol.
Europe has moved into the “pound of flesh” stage of negotiations. Everyone just wants to make their point and the probability of a deal is dropping by the day. Europe is running out of time, and is just clueless. Yesterday has to confirm that even for the most optimistic person out there. They decided they […]
