The Weekend Read: Europe Gives Birth to the “Trichet Bond”

As explained in the Financing Offer, investors will be offered four new instruments in addition to the opportunity to participate in a debt buyback program to be established by the Greek government in consultation with the official sector. The instruments are structured to attract voluntarily a wide range of investors. The four instruments involve:

  1. A Par Bond Exchange into a 30 year instrument
  2. A Par Bond offer involving rolling-over maturing Greek government bonds into 30 year instruments
  3. A Discount Bond Exchange into a 30 year instrument
  4. A Discount Bond Exchange into a 15 year instrument

For instruments, 1, 2 and 3 the principal is fully collateralized by 30 year zero coupon AAA Bonds. For instrument 4, the principal is partially collateralized through funds held in an escrow account. All of the debt servicing risk on these new instruments, however, remains full Greek risk.
-Institute of International Finance

China
China “Slowing” as Jintao Promises More Price Controls – Forbes
Slower China Economy Beats Boom and Bust: Caterpillar CEO – CNBC

Commodities
No PK, Bernanke and His Global Central Bankers are Driving Up the Price of Gold – EPJ

Companies
Borders collapse signals a new retail chapter – FT
Fake Apple store cuts to core of China risk to brands – Reuters
Tech heavyweights line up to woo Hulu – FT

Currencies
The Dollar, Gold and The Quality Of Money – Forbes

Economics
Bad economy may be mother of invention – USA Today
California job market is rebounding, but unevenly – LA Times
Concerns About Economy, Jobs Outweigh Worries About Deficit – Gallup
Location Matters in Manufacturing – TR
The Lesser Depression – Paul Krugman
Why Companies Win While Economies Lose – Moneyland

Emerging Markets
Locally Denominated Emerging-Market Bonds Attract Fresh Capital – WSJ

Europe
Europe Debt Plan Relieves Pressure – WSJ
Europe finally admits its debt problem to save the euro – Joseph Stiglitz
Europe Must Choose a Currency Union or a Financial Union – Floyd Norris
Europe’s debt crisis: Counteroffensive – Economist
Fitch: Greek Deal a Restrictive Default – WSJ
Greece Debt Exchange Offer: Statement by the IIF – IIF

Fiscal/Monetary Policy & Debt
Debt and Delusion – Robert Shiller
Geithner in crisis meetings on default threat – FT
The Next Debt Crisis Could Come from Paris – Bloomberg

Geopolitical
Moves to ease tension in South China Sea – FT
Terrorism strikes Scandinavia – Economist

Japan
Japan’s debt: The domino that never falls – Economist

Markets
Default Insurance Has Some Quirks – WSJ
Frank Quattrone on Bubble 2.0 — or is it? – CNN Money
Investors again pay big for dot-com stocks – USA Today

Technology
Big Science: The Universe’s Ten Most Epic Projects – PopSci
First Analysis of Trends on China’s Version of Twitter – Physics arXiv Blog
Nanosensor Tattoo Tracks Sodium and Glucose via iPhone App – TR
They came from Mars: Scientists begin the search for DNA on Mars – Scienceline
Sounds like space: recordings collected by NASA’s spacecraft – Scienceline

Video: Space shuttle Atlantis final landing: NASA 30-year program over

(click here if video is not observable)

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2 Responses to The Weekend Read: Europe Gives Birth to the “Trichet Bond”

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