Any Greek Restructuring Should Be Designed To Trigger A Credit Event
As talk about an actual restructuring of Greek debt increases, the EU continues to think that avoiding a CDS Credit Event is a good thing. More and more stories and leaks indicate that a real restructuring of Greek debt is on the table, with write-offs of as much as 50%. Whether it will be real, […]
Hi, It’s Tim, I’m Stuck In Paris, And Need You To Send $500
This morning feels like a bad Facebook scam. Mr. Geithner continues to remain convinced that nothing bad would have happened had Lehman not gone bankrupt – in spite of a dearth of evidence supporting that view – and has decided that giving more of my money to the IMF will help “solve” things. Solve had […]
Credit Markets – Looking Under The Hood
Yesterday was a busy day in the markets. The new issue market was very busy, 9 issuers came bringing a total of $10.5 billion. GECC was the biggest deal with $3 billion in total. I think the Time Warner bonds were the most interesting as it was $1 billion in total and the largest non […]
Well, if JPM is any indication…
MS is going to have a blow-out quarter, when they mark their debt: http://www.zerohedge.com/news/morgan-stanleys-biggest-asset-their-debt
As the DOW and NSDQ Race To Go Unchanged on the Year
You have to be impressed with their resilience (or think they are insane). With all the things going on here and abroad, the disappointing economic data, the debt crisis, the growing trade tensions with China, it is an impressive showing. Very little seems better than it was back on January 1st of this year, and […]
Volcker Rule – Not Worth Reacting To
The Final Draft of the Volcker Rule was published for comment at the end of September. Even skipping our traditional rant about government bureaucracy, it is a document over 200 pages long, in which the word “exemption” occurs on no less than 100 pages (it is used 426 times in total). At a quick glance, […]
A Butterfly n Japan and a Banker in Belgium
Chaos theory states than in complex systems, a butterfly flapping its wings in Japan can cause tornadoes in California. Whether or not that is true, a Banker in Belgium buying Greek bonds can impact the lives of factory workers in Germany. Europe continues to head down the path of making the system more complex than […]
The Evolution of EFSF
It seems so long ago, but it was just over a year ago the EFSF was first created. The first iteration was set up in a way that although the headline number seemed relatively large, the amount that would ever be lent was under 300 billion euros as there were various holdbacks and other mechanisms […]
Italy Votes, IMF Gives, and EFSF Yields Increase
Italy rejected the budget today. I can’t imagine that it is because the opposition wanted more austerity. That must make the Slovakians even more eager to provide the EFSF with money to buy Italian bonds. The IMF has declared that they went to Greece (because they had purchased non-refundable tickets) but are going to give […]
While Everyone Is Making Fun of the Slovak Republic…
It seems like the Slovak Republic will agree to the current plan. It seems like some politicians have decided that getting a general election and a chance to be in charge and have power is worth selling out what they believe in. In the meantime, with the current structure the Slovak Republic, as small as […]
