Yep, the headline barrage continue - from Reuters:
- Moody's sovereign head says more likely than not that Greek debt roll-over would be a credit event
- Moody's sovereign head says hard to see how any Greek roll-over would be truly voluntary, would therefore be a default
- Moody's sovereign head says any Greek restructuring would to big to be effective therefore disruptive for ECB, Banks
- Moody's sovereign head says impossible to have orderly and effective Greek debt restructuring
- Moody's head of sovereign risk says Euorzone, ECB has resources to contain short term financial pressures
- Moody's says current Greek rating sees 50% default risk in 3-5 years
Naturally, unless this changes and Moody's is bribed with enough worthless paper to keep its mouth shut, this means game over for the "voluntary" bailout track as we predicted, as it implies an event not so much of default (which certainly will occur), which is largely irrelevant, but of remarking of ECB Greek bond collateral, which will certainly be greater than the 4.25% haircut needed to push the ECB into insolvency.