RSS feeddefault
’What happens when the world defaults?
The question one inevitably has to ask when all the risk in the world has been placed upon sovereign shoulders — who bails out the world when it defaults?
Davos delegates, as can be expected, are already working on a contingency.
Corporate markets head for indigestion
After the busiest start to any year for sovereign emerging-market debt, it’s corporate bond investors around the world who now seem to be heading for a massive case of indigestion, as ShortView noted last week.
Consulting the Greek CDS oracle
Forecasting the fate of nations has never been easy.
Take for example the story of King Croesus of Lydia, told by Greek historian Herodotus.
In trying to decide upon a campaign against the Persians,
Greece default or no?
Does the market believe Greece when it says there’s “absolutely” no risk the country will default on its debt?
The answer, perhaps surprisingly, seems to be (sort of) yes. At least in the case of the CDS market.
The Ecuadorian haircut and the philosophy of debt
Ecuador did a pretty bold thing this week, to put it mildly.
April 20 (Bloomberg) — President Rafael Correa offered to repay holders of Ecuador’s defaulted bonds as little as 30 cents on the dollar as the country’s foreign reserves plunge amid slumping oil prices.
Moody March
While March saw equity markets rallying – the experience of the corporate credit sector was somewhat different.
RBC Capital has a summary of Moody’s March default report, released late Monday.
Moody’s released its default report for March which saw a pick-up in the default rate from 5.2% in February to 7% in March.