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’CDS report: SovX and Main converge
Markit’s Gavan Nolan wrote this CDS report
Financial markets started the month on a strong note, with both credit and equity extending Friday’s rally. The Markit iTraxx Europe was about 2bp tighter at 83.5bp,
Greek austerity measures and will-they-won’t-they KfW
Greece continued to dominate the headlines on Friday.
Here’s the FT on Greek austerity:
George Papandreou, Greek prime minister, vowed on Friday to put aside the political cost and take what steps were necessary to lift the country out of its debt crisis,
KfW head quits over IKB crisis
The crisis at IKB, the German bank crippled by its subprime investments, claimed one of its biggest casualties on Monday with the resignation of the chief executive of the bank’s largest financial backer.
Bail-out time again for Germany’s IKB
The latest bailout of German bank IKB is due to be decided on Wednesday, with shareholders meeting to discuss a government-backed rescue plan. Over recent days the Dusseldorf-based lender has discovered fresh subprime losses of up to €2bn,
Trading inquiry could disrupt IKB sale
IKB, one of the first victims of the global credit squeeze, has been hit by an investigation by state prosecutors of present and former executives. The inquiry could complicate the sale of the troubled lender.
More trouble ahead for German Landesbanken
Germany’s banks are in a mess. Two of the smaller Landesbanks, SachsenLB and IKB, were the first casualties of the credit crunch – imploding as they did way back in August.
Focus shifted when things started to go awry elsewhere in the world.
Germany’s KfW doubles cover for IKB
KfW on Tuesday nearly doubled the amount it is setting aside to cover potential losses at German lender IKB to almost €5bn ($7.41bn) as it warned of a “dramatic” worsening of conditions in the US subprime mortgage market.
KfW to sell 37 per cent stake in IKB
Germany’s state-owned KfW bank has appointed Merrill Lynch to look “closely at the option of selling” its 37.8 per cent stake in IKB, the troubled German lender hit by the subprime crisis. IKB issued a shock profit warning in July stemming from huge undisclosed exposures to the US subprime mortgage market.
Germany rescues subprime lender
US mortgage turmoil hit investor confidence in Europe on Wednesday as details emerged of a German government rescue of a domestic lender hit by US subprime mortgage investments. Peer Steinbrück, German finance minister,
Subprime woes hit German banks
The fallout of the US subprime mortgage market hit the German banking sector on Monday as IKB, a specialised lender to smaller companies, and Commerzbank, the country’s second-biggest bank, warned they would be hit by losses from risky property loans.