Category Archives: Sovereign Debt

WTF Were They Thinking?

That’s our System 1 (fast) thinking  kicking in after hearing the news of the Cyprus bail-in of depositors.  Our fast thinking really fears contagion and makes us want to vendere la casa!   We often get into trouble trading with … Continue reading

Posted in ECB, Equities, Euro, Germany, Sovereign Debt, Sovereign Risk | Tagged , , | 6 Comments

Eurozone Sovereign Spreads Since Italy’s Election

ECB president, Mario Draghi, spoke in this morning’s press conference about how contagion has been contained in the eurozone bond markets since the Italian elections.   The data are in and he is right. The markets had closed before the election … Continue reading

Posted in German Bund, Germany, Italian Yields, Italy, Sovereign Debt, Sovereign Risk | Tagged , , , | 1 Comment

Who Owns the U.S. Treasury Market?

The 10-year Treasury bond yield traded at 2.03 percent today a level not seen since April 2012. We thought it’s a good time to revisit who are the major holders of U.S. Treasury securities.   Some of the data are … Continue reading

Posted in Bonds, Fiscal Policy, Interest Rates, Sovereign Debt | Tagged , , | 8 Comments

VIX Has Largest Weekly Down Move Since Inception

The CBOE has a nice piece out noting this week’s 39.1 percent collapse in the VIX was the largest weekly percent down move since the index was launched in January 1990.  The week also saw record volume days for the … Continue reading

Posted in Global Stock Performance, Monetary Policy, Sovereign Debt | Tagged , , , | 4 Comments

Cue ‘Plan C’ Cliff Aversion Scheme

President Obama proposed a package of middle-class tax cuts and unempoyment benefits as a temporary solution to the looming ‘fiscal cliff.’ White House correspondent David Nakamura says Republicans may face pressure to pass the measure. Hope the pols have, at … Continue reading

Posted in Fiscal Cliff Monitor, Fiscal Policy, Sovereign Debt | Tagged , , , | Leave a comment

Ciao, Mario Monti!

This is not good.  Not totally unexpected.  Cue Italy and France in 2013.  Maybe. (click here if video is not observable)

Posted in Euro, France, Sovereign Debt, Sovereign Risk | Tagged , , | 1 Comment

Back to Wartime Debt Levels

The IMF’s World Economic Outlook is out with some great charts and we post one of them right here. Last week the Fund’s managing director,  Christine Lagarde, issued a chilling warning on the global debt overhang, Ms Lagrde had earlier … Continue reading

Posted in Sovereign Debt, Sovereign Risk, Uncategorized | Tagged , , , | 1 Comment

French Protest for Debt Relief

We agree the world does need an international bankruptcy court for sovereign debt.  Complicated to implement, however.   Nevertheless,  clear rules on recourse for creditors and relief for borrowers would limit the economic damage of sovereign panics. Around the world protesters … Continue reading

Posted in Sovereign Debt, Sovereign Risk | Tagged , , , | 1 Comment

Stratfor: Euro Fracture

As the European Union splinters, Stratfor’s Reva Bhalla examines the limits of Continental integration being sought by European policymakers. For more analysis, visit: http://www.Stratfor.com (click here if video is not observable)

Posted in Euro, Food Prices, Germany, Sovereign Debt | Tagged , , | Leave a comment

Germany’s FinMin says court to back European bail out fund

(click here if video is not observable)

Posted in Germany, Sovereign Debt, Sovereign Risk, Spain | Tagged , , | Leave a comment