Posts tagged 'CACs'

If you’re going to CAC, now might be a good time — Greece edition

Yep, this is a Greece post in a series on Argentina and the pari passu saga.

We’ll explain. Read more

Greece joins cool circle

You’re just not cool these days if you aren’t operating some sort of circular mechanism to reduce your debt levels in the eyes of the outside world. And it appears that Greece, sick of being bullied by the circular crew, is looking to get in on the act.

We’re talking about the Greek debt buyback, which should be completed on Friday if deadline talk is to be believed. Read more

Waiter! There’s a central bank in my CAC

We missed this last week, from the (deep breath) Economic and Financial Committee (EFC) Sub-Committee on EU Sovereign Debt Markets.

Something to read if you’re planning to buy a eurozone sovereign bond after 2012… Read more

Greece CDS: trigger happy

Jeez, guys, look, there’s going to be a credit event that triggers Greece CDS, ok? Or, at least, it seems highly likely. So, take a chill pill.

What, you don’t want to? Instead you want to submit another request to the Isda Determinations Committee to try to trigger the contracts? Fine, have it your way (click to expand): Read more

Metaphors to while the night away

With a long night of Euro-deal watching ahead we thought we would leave you some mixed-metaphors to mull over.

This is from Gabriel Sterne over at Exotix (emphasis his): Read more

Presenting… the ESM Treaty

Remember November 29, 2010 — the time before July 2011 that Italian debt was massively sold by long-only investors? Germany probably triggered it a bit by calling for the creation of the European Stability Mechanism (ESM), a bailout mechanism involving burden-sharing for sovereign bonds.

Roll on 11 July 2011 and we have a signed treaty for… the ESM!Read more

ESM panic! Subordination, restructuring, CDS, oh my!

Out, erm, yesterday. The term sheet for the ESM.

Details of the European Stability Mechanism, released on Tuesday, promptly sent European peripheral bond yields in a reverse tail spin. As we’ve noted before, the big aim of the ESM is to force the private sector to share in debt losses — which is a nice way of saying it will allow sovereigns to restructure or even (gasp) default once the thing comes into effect after 2013. And in the meantime, there’s lots of talk that Greece or even Ireland, could try to restructure their debt ahead of the 2013 date. Read more

A Greek diaspora bond odyssey

Filed to the SEC on Tuesday — Greece’s shelf registration for the diaspora bonds aimed at widening the Hellenic Republic’s investor base. All the way to the US.

A key point — regarding jurisdiction: Read more

Regling looks at Manila, to help Athens

If you’re as obsessed with European Financial Stability Facility (EFSF) head Klaus Regling as we are, you might have noticed these bits on his CV:

What does this have to do with Manila? It’s thought that during his time at the IMF, Regling was stationed in both Washington DC and Jakarta, where he may well have been exposed to the debt restructurings undertaken by the Philippines at the time. Read more

Those crazy, crazy CACs

Or, all CAC-ed up?

In addition to creating a two-tiered sovereign bond market in Europe, those Collective Action Clauses (CACs) beloved by ze Germans — and meant to force debt restructuring losses on private investors — could well end up increasing a country’s chance of defaulting. Read more

Merkel’s nine-point plan

Ahead of that all-important Thursday meeting of eurozone finance ministers  in Brussels — German chancellor Angela Merkel has been outlining her nine-point plan for “Wirtschaftsregierung” (literally economy-government) in Europe.

Speaking to the Bundestag, Merkel once again took ‘E-bonds‘ — the idea of joint eurozone debt issuance — off the table, but did put forward the below ideas. Read more