(BN) IIF’s Dallara Says Greek Deal Is `Solid’ for Investors

Posted by on Feb 21, 2012 in Uncategorized | No Comments

At least he admits the bailout is for “investors” and not for Greece.  Although the IMF report seems extremely optimistic, with a primary deficit of only 2.4 billion in 2011, and allegedly only 1 billion this year, really makes you wonder why not just be a lot tougher on bond holders?  At the same time, […]

Just The Facts, Ma’am.

Posted by on Feb 21, 2012 in Uncategorized | No Comments

Well, we are finally getting close to getting some actual facts. The 9 page IMF report has been leaked.  It doesn’t show much “sustainability” and that is without taking a closer look at the assumptions.  That report talks about a 95% PSI participation rate on an “updated pool”. While we haven’t seen any details on […]

It’s 3am in Brussels, do you know where your Fin Min is?

Posted by on Feb 20, 2012 in Uncategorized | No Comments

If past performance is any indication of future returns, they are now desperately cobbling together something that sounds good, but has enough conditions and things to iron out, that they can have another summit next week. Shorting Belgium catering companies was a bad idea.

Why Are We Waiting? Why Are We Waiting? Oh Why, Why, Why?

Posted by on Feb 20, 2012 in Uncategorized | No Comments

So the PSI negotiators are in with their bosses, discussing further haircuts.  Bank equity holders haven’t realized it, but the banks are now being run by the Troika.  When you rely on them for all your money, for supporting your positions, and being a backstop for capital, you have little choice but to listen to […]

Pari Passu and Bouillabaisse

Posted by on Feb 19, 2012 in Uncategorized | No Comments

I have always thought that “pari passu” and bouillabaisse a couple of the coolest things to say, but with the latest plan by the ECB to exchange their Greek bonds for new bonds only they would hold it is worth taking a closer look at “pari passu”. This is not meant to be in any […]

The Lunacy Of It All

Posted by on Feb 17, 2012 in Uncategorized | No Comments

Greece is trying to cut 325 million more from their budget to appease the troika to get money. There is a real chance the Troika gives Greece money so it can pay 16 billion of principal and interest on March 20th. Read these lines over and over and let me know if it doesn’t make […]

(BN) ECB Greek Plan May Hurt Bondholders While Triggering Debt Swaps

Posted by on Feb 17, 2012 in Uncategorized | No Comments

A good summary. Here is how is see it playing out and an explanation of what the ECB has done. If there was a bond with a billion outstanding and the ECB held 200 million and private investors held 800 million it would make the PSI awkward. It would be offered to everyone, but the […]

European Sovereign Bond Protection Facility Launched, EFSF Says

Posted by on Feb 17, 2012 in Uncategorized | No Comments

Finally. Will be interesting to see if this really works. I find it hard to get excited about first loss protection from a bunch of countries that dont want to lose money and don’t think they can. Maybe they will make a law that retroactively makes payments from EFSF illegal?   +——————————————————————————+   BFW 02/17 […]

DOW JONES REPORTS THE ECB GREEK BOND SWAP IS NOW DONE

Posted by on Feb 17, 2012 in Uncategorized | No Comments

From Mark Grant at Southwest Securities.   THIS MEANS THAT EACH AND EVERY EUROPEAN BOND THAT YOU OWN IS NOW SUBORDINATED TO THE ECB AND THE EUROPEAN UNION. IF THEY CAN SWAP THEIR BONDS FOR NEW BONDS WITH DIFFERENT TERMS, NO CAC CLAUSE IN THIS CASE, THEN THEY CAN SWAP THEIR BONDS FOR ANY TERMS […]

Greek Bailout Or Deliverance?

Posted by on Feb 17, 2012 in Uncategorized | No Comments

Bailout somehow seems too nice of a word. It implies working together, giving a helping hand, making a real effort to help someone out. As I read the headlines coming out of Greece for the past 2 weeks, all I can think of is, how do you say “squeal like a pig” in German. The […]