Sovereign Debt

Tyler Durden's picture

Ahead Of Varoufakis' Meeting With Famous Sovereign Bankruptcy Lawyer S&P Downgrades Greece To CCC+





To think it was just recently in September of last year when the S&P, seemingly unaware of the tragic reality facing Greece in just a few months (by reality we meen democratic elections which overthrew the previous regime which was merely a group of Troika picked technocrats), upgraded Greece to B and said "The upgrade reflects our view that risks to fiscal consolidation in Greece have abated." Well, the risks have unabated, and two months after S&P flipflopped and downgraded Greece back to B- on February 6, moments ago it downgraded it again, this time to triple hooks, aka the dreaded CCC+. But, as City AM reports, the biggest news is that the Greek Finance Minister "will on Friday meet with infamous sovereign debt lawyer Lee Buchheit, who has helped numerous countries restructure their debt. Buchheit is a partner at top US law firm Cleary Gottlieb."

 
Tyler Durden's picture

ECB Preview: Draghi To Address Bond Scarcity, Stress Full PSPP Implementation





"Mr Draghi during the press conference to stress the need for the full implementation of the expanded asset purchase programme as an important condition for the positive growth and inflation outlook to materalise," Goldman says, previewing the Draghi presser where the ECB chief will likely get more than a few questions about the possibility that the central bank will run out of bonds to purchase in the course of monetizing the entirety of euro net issuance.

 
Tyler Durden's picture

Chaos And Hegemony - How US Dollar Imperialism Dominates The World





To maintain its hegemony, the U.S. must by all means prevent the emergence of rival powers and impede possible current as well as future threats that could emanate from oil states. The ideal condition for enforcing its own goals at a low cost would be the fragmentation of antagonistic power centers through ethnic and religious strife, civil wars, chaos and deep-seated mistrust in the Middle East – always following the well-known premise of ‘divide and rule.’ In fact, we are currently experiencing tremendous changes towards such a chaotic state of affairs.

 
Reggie Middleton's picture

"Fu$k the Fundamentals!": Negative Rates In EU Will Absolutely Wreck the Very System the ECB Sought to Save





The dude that called the Pan-European Sovereign Debt Crisis in 2010 is making it clear that the ECB is playing with fire, but will never admit it's getting burned.

 
Tyler Durden's picture

Gold-Backed SDR "Is Quite Likely To Happen", LSE's Lord Desai Warns





As many are increasingly coming to terms with the 'obvious failure of fiat currency', the inevitavble question arises "what next?" Earlier this year, we discussed the possibility of a Chinese- or Russian-currency backed by gold, amid the increasing calls (domestically and abroad) for an end to USD Reserve hegemony; but this weekend, as Bloomberg reports, Lord Meghnad Desai, chairman of The Official Monetary and Financial Institutions Forum, stated that IMF Special Drawing Rights (SDR) should contain some gold to help stabilize the currency.

 
Tyler Durden's picture

7 Years Later The "Very Serious People" Finally Ask: Was QE Worth It?





"The policy actions that cause financial repression entail a number of unintended consequences. These include potential asset price bubbles, convergence in asset allocation strategies of otherwise heterogeneous financial market participants and an increase in economic inequality. With regards to the latter, the impact of foregone interest income for households and long-term investors is substantial. At the same time, the equity rally has predominantly benefited society’s wealthiest." The hit to US savers: nearly a half trillion.

 
Tyler Durden's picture

Draghi Is No Longer Bernanke's Best Friend (Or The End Of The Mainstream Theory Of QE)





What a wonderful and perfectly representative dichotomy of where monetarism stands. We have Bernanke - the former, massive practitioner of QE - telling the world how it does nothing much; while at the exact same time Draghi - the latest - tells the world its super-healing and supporting properties. What’s reconcilable about those two positions is simply asset bubbles, as they are what stand against the former and remain the only, dim hope of the latter.

 
Capitalist Exploits's picture

Faith in Chaos





Massive misallocations of capital stare at us like wild caged animals through the bars of a cage in the zoo!

 
Tyler Durden's picture

IMF Says Bernanke Is Wrong On Secular Stagnation





In a new study, the IMF asks whether there's a global slump in real private investment (spoiler alert: yes there is and it's broad-based and endemic in advanced economies) and also suggests that productivity growth across the globe is likely to remain constrained for the foreseeable future.

 
Marc To Market's picture

What is the ECB Buying?





A  simple discussion of what the ECB is buying and some of the potential implications.

 
Tyler Durden's picture

What De-Leveraging? ECB QE To Drive $600 Billion in New Issuance





The ECB’s €1 trillion plus in asset purchases should drive demand for euro corporate credit as yields on sovereign debt and SSAs are driven relentlessly lower. UBS is now forecasting €600 billion in supply for 2015, up a fifth from last year with up to €140 billion in HY issuance. With liquidity in the secodary market constrained by regulation, does this increase the risk that a tail event could trigger a bond market meltdown? 

 
Tyler Durden's picture

Calamitous Consequences





Is it possible that capitalism’s underlying focus on profits, and the necessity for endless purchases of goods and services, has a practical limit?

 
Tyler Durden's picture

Bad News For America's Biggest Housing Bubble: San Francisco Home Prices Suffer Biggest Drop In Three Years





It was not only the annual growth rate of only 7.9%, matching the lowest since the European debt bubble burst in 2010, but also the sequential rate of price drops, at -0.9% - the biggest monthly drop in three years, or since January 2012 - that will once again be a subject for concern of housing watchers. Because should the price decline resume its acceleration without any emerging tailwinds to prop up the local housing market, then there will surely be some severe fallout such as this peak housing bubble example, in which as Curbed reported last week, a run down shack which listed for $799,000 sold for 50% more, or $1.2 million a few weeks later!

 
Tyler Durden's picture

Meet Andorra: Europe's Next Failed State





Nestling idyllically between France and Spain in the foothills of the Pyrenees, Andorra - which has enjoyed the benefits of European borders without the restrictions of EU membership - has seen its risk "increase beyond our expectations," according to S&P. As a reminder, when Cyprus was "templated" and depositors awoke with a 47% haircut, its total financial assets to GDP was around 8x, Andorra is now at a stunning 17x. As The Telegrpah explains, in the last three weeks, the state has been gripped by a banking crisis that threatens to take it to the brink; and Andorra, which is not a member of the eurozone but uses the single currency on an informal basis, would have no way of bailing them out (with no central bank or lender of last resort). In short, the country faces a catastrophe if its banks fall apart.

 
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