The Greek Debt Crisis


Daily News Roundup 2012: Tuesday 8 May

Good morning The headlines: Consumer credit in the US is growing. Consumer credit “surged” in March: its largest monthly movement in a decade. The increase came mostly from new car and student loans (but the indicator released by the Fed doesn’t track home mortgages – so where else is the increase going to come from?). […]

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Daily News Roundup 2012: Monday 7 May

Good morning The headlines: Sarkozy is no longer: enter Hollande and the French Socialists. So the Socialists have won, and Hollande rides into French Presidential power on the back of “No to austerity”, “I’m not Sarkozy” and “No more presidential bling-bling”. Actually – that’s not entirely accurate. The parliamentary elections still need to take place […]

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Daily News Roundup 2012: Friday 4 May

Good morning The headlines: After all the excitement of the last few days, Mario Draghi says nothing about further stimulus in the Eurozone. The official position of those expecting stimulus is “saying nothing means that he’s leaving the option open”. The argument about austerity is now a boring one: austerity kills growth and therefore the […]

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Daily News Roundup 2012: Monday 30 April

Good morning The headlines: Hedge funds are betting against the Eurozone. There is a core group of hedge fund managers (including John Paulson – who keeps being mentioned in books written by Michael Lewis) that has been rejoicing in the Long Term Refinancing Operations of the ECB. The theory is that German bonds are underpriced […]

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Daily News Roundup 2012: Tuesday 24 April

Good morning The headlines: To make an observation about a general trend, the peoples of Europe are making their opposition to austerity measures known. France has just delivered a defeat to Sarkozy in favour of Hollande (the observation that keeps being made is how Sarkozy is the first incumbent to not come first in a […]

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Daily News Roundup 2012: Monday 23 April

Good morning The headlines: So the IMF is $480 billion richer this week. But it’s short of the $600 billion that Christine Lagarde was hoping for (the US decided not to offer anything – wisely, as where would their money have come from?). In her speech, she used a great metaphor about needing an umbrella if […]

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Daily News Roundup 2012: Thursday 5 April

Good morning The headlines: In Eurozone news, the pressure is properly hyping around Spain. This after the near-tragedy of Spain’s debt auction yesterday. Spain sold 2.59 billion euros worth of bonds in the auction – which was just above the minimum amount that it had planned, but well below the maximum of 3.5 billion. At […]

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Greek CDS Exposure: Proving the ISDA and Bloomberg Wrong

According to numerous news reports, the net exposure arising as a result of Friday’s decision to declare the activation of Greek CACs a credit-default event amounts to approximately $3.16 billion (assuming that the bonds achieve no value at the ISDA auction on March 19). Where is the data coming from? On the same day that […]

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Daily News Roundup 2012: Monday 5 March

Good morning The headlines: The deadline for the Greek debt-swap approaches this week. If there is enough private investor support, the CAC (Collective Action Clauses) will not be called into play, which in turn would mean that a potential default event triggering Credit-Default Swaps may be avoided. In all of this, the Luxembourg Prime Minister […]

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The Subprime Mortgage Crisis

Alright, before I begin, I’d like to make the following observations: Some of the concepts/instruments I am going to mention have been explained more fully in a number of previous posts: Mortgages (see here) Mortgage-Backed Securities (MBS) (see here) Collateralised Debt Obligations (CDO) (see here) Ratings Agencies (see here) The content is based on a […]

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