"If you're going to panic, do it fast and beat the crowd." ~ Jesse Livermore

Saturday, March 10, 2012

ISDA declares Credit event in Greece; Default is official; First Eurozone default, few reasons to cheer

Euro zone first default gives few reasons to cheer
Reuters Blogs (blog)
The euro zone's first restructuring will not be chaotic. But it has done away with the pretence that aeuro zone sovereign's signature is golden. And Greece will still struggle with a heavy debt load. The good news is that enough bondholders agreed to ... 

Greece succeeds in bond deal but not in solving debts - Telegraph: "European leaders claimed victory after Greece successfully completed a €206bn (£172.3bn) bond swap, even though it triggered the default they were desperate to avoid. After a marathon seven-hour meeting, the International Swaps & Derivatives Association (ISDA) tonight dramatically declared a "credit event had occurred" and billions of euros of credit default insurance will have to be paid out. The credit default swap (CDS) market is opaque but analysts estimate the ruling will cost European banks around €3.5bn. Even so, bankers were relieved by the decision – the opposite call could have undermined investor confidence in the entire CDS market. . . . "

Financial crisis: Greek drama is not short of options
Financial Times
By Lucy Warwick-Ching The eurozone crisis is unsettling for investors with funds tracking equity markets, but spread betters are taking advantage of fast-moving exchange rates. Greek political leaders have been busy negotiating the terms of a second ... 

Economists say euro crisis may not be over
EurActiv
A top EU economist has warned that consumption is unsustainable in parts of the eurozone and that many countries would not recover economically for "many years" - an assessment backed other experts who call for reforms at European and national levels.

EurActiv 

ISDA declares Credit event in Greece; Default is official
FXstreet.com
Investors that bought Credit Default Swaps (CDS) on Greek debt will get paid. Nevertheless, ISDA Committee will Meet again to discuss Greek credit event on Monday according to Dow Jones. ISDA has resolved to hold an auction with respect to the ...

German Banks: Small Impact Seen From Greek Credit Event, CDS Trigger
Wall Street Journal
By Alexandra Edinger Of DOW JONES NEWSWIRES FRANKFURT (Dow Jones)--German banks are unlikely to face major problems if Greece's debt restructuring were to be determined a "credit event" and payouts on insurance contracts against a Greek default--known ...

German Banks Unlikely To Be Affected By Greece Credit Event
Fox Business
FRANKFURT -- German banks are unlikely to face major problems if Greece's debt restructuring were to be determined a "credit event" and payouts on insurance contracts against a Greek default--known as credit default swaps--were triggered, according to ...

Greek Default Is Now Official: Insurance Payouts Triggered
CNBC.com
A group representing dealers in credit default swaps decided Friday that Greek'sbond swap constitutes a "credit event" that entitles holders of Greek credit defaultswaps to compensation. The "yes" vote by the International Swaps and Derivatives...

Greece Default Triggers Swaps, So Now What?
Huffington Post
The International Swaps and Derivatives Association, the trade group that oversees the market for credit-default swaps, essentially insurance policies against bond defaults, on Friday declared that Greece had undergone a "RestructuringCredit Event," ...

Greece Triggered Credit Event: Default Swaps to Rescue
Barron's (blog)
By Dimitra DeFotis Payments will be made on credit default swaps as a result of the bond agreement Greek authorities reached this week with creditors. A committee of the International Swaps and Derivatives Association in London made the decision late ...

Greece Deal Triggers $3B in Default Swaps: ISDA
Bloomberg
A total 4323 credit-default swap contracts may now be settled after ISDA's determinations committee ruled the use of CACs is a restructuring credit event, according to a statement distributed today by Business Wire. Before the ruling, Greek swaps rose ...

Bloomberg

US STOCKS-Wall St up on jobs data, brushes off Greek default
Reuters
Trading was choppy in late afternoon trade after the International Swaps and Derivatives Association said Greece has triggered an insurance payment on credit default contracts. Investors took the Greek news largely in stride because theevent was ...

ISDA Says Greece In Default, CDS Will Trigger
Forbes
UPDATE (2:43 pm): An ISDA spokesman told Forbes no decision has been reached regarding on whether Greece's restructuring qualifies as a credit event, which would in turn trigger CDS protection. A report by Derivatives Intelligence published around 2:00 ...

ISDA declares Greek credit event, CDS payments triggered
Reuters
The "credit event" ruling means a maximum of $3.16 billion of net outstandingGreek credit default swap contracts could be paid out, though the actual amount is likely to be lower because bondholders are not losing all of their original investment.

Eurozone OKs Some of 2nd Greek Bailout
TIME
09, 2012 Michael Probst / AP (BRUSSELS) — The finance ministers of the eurozone say Greece can receive a first batch of bailout money of up to €35.5 billion ($46.9 billion) to fund a massive debt relief deal with private investors.

Greek Deal Calms Euro-Zone Bonds
Wall Street Journal
By NEELABH CHATURVEDI And EMESE BARTHA LONDON—There was a general sigh of relief across euro-zone debt markets as news emerged Friday that there was a strong uptake to Greece's €206 billion ($273.47 billion) private-sector debt restructuring, ...

Greece Strikes Deal to End Financial Crisis
Voice of America
March 09, 2012 Greece Strikes Deal to End Financial Crisis VOA News Greece says the majority (85.8 percent) of the country's private lenders, including financial institutions, have agreed to a bond swap deal to help the country eliminate a $142 billion ...

Greek Debt Deal Calms Euro-Zone Bonds; Watching CDS Decisions
Wall Street Journal
By Neelabh Chaturvedi LONDON (Dow Jones)--There was a general sigh of relief across euro-zonedebt markets as news emerged Friday that there was a strong uptake to Greece's EUR206 billion private-sector debt restructuring, but caution prevailed as some ...

Euro-Zone Debt—Not All Toxic
Wall Street Journal
"European corporates are largely healthy, and have made it through the financial crisis unscathed," says Alexander Baskov, portfolio manager at Pictet. "Our perspective is opportunistic. We can pick the issuance that we think is secure, ...

Eurozone ministers to discuss Greek debt deal
RTE.ie
Eurozone finance ministers are holding a conference call to discuss the debt restructuring deal reached in Greece. Eurozone finance ministers are holding a conference call to discuss the debt restructuring deal reached in Greece, which should reduce ...

Money funds add euro zone debt again
Reuters
NEW YORK (Reuters) - Prime money funds increased their holdings of euro-zone bank securities in February, suggesting less fear of the euro-zone debt crisis spiraling out of control, JP Morgan analysts said in a report released on Friday.

Eurozone crisis live: Relief as Greece bond swap deal concluded
The Guardian
We'll be tracking all the reaction to the result here in the live blog, as well as following other developments in the eurocrisis. Greece's Finance minister Venizelos leaves his office in Athens.

The Guardian

Eurozone clears first part of Greek bailout after bond swap
Monsters and Critics.com
Athens - Eurozone finance ministers on Friday cleared 35.7 billion euros (47.2 billion dollars) out of a second bailout package for Greece after the country secured a bond-swap deal that will drastically reduce its national debt.

US money funds add euro zone debt again
Reuters
Prime money funds add euro-zone debt for 2nd month * Funds add French bank paper, mostly overnight debt * Funds also raise holdings in non-European securities NEW YORK, March 9 (Reuters) - US prime money funds increased their holdings of euro-zone bank ...

Eurozone finance ministers approve release of €35.5bn in aid to Greece
Irish Independent
Photo: Getty Images EUROZONE finance ministers have approved a €35.5bn tranche of funding aid to Greece following the debt swap deal agreed with banking creditors. The EU/IMF/ECB troika had demanded the bond swap as a condition for a total €130bn ...

Irish Independent

Greeks Strike Deal to End Financial Crisis
Voice of America (blog)
Speaking in the southern French city of Nice Friday, French President Nicolas Sarkozy praised the deal, saying it means “the problem is solved” and “a page in the financial crisis is turning.” Fitch Ratings, however, downgraded Greece's credit rating ...

Eurozone releases loan tranche in wake of PSI deal
Kathimerini
Eurozone finance ministers approved on Friday the disbursement of just over 35 billion euros for Greece, a few hours after the country completed a debt restructuring scheme that will reduced the amount it owes by some 100 billion euros.

Euro zone finance ministers to assess Greek deal shortly: Germany
Reuters
BERLIN (Reuters) - Euro zone finance ministers will discuss the results of Greece's debt swap deal at a teleconference at around 1130 GMT on Friday and will then decide at a meeting next week on unlocking a second bailout for the country, ...

Eurozone finance ministers: Greece can get $47 billion in bailout money to ...
Washington Post
BRUSSELS — Eurozone finance ministers: Greece can get $47 billion in bailout money to fund debt relief. Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Venizelos Comes of Age
Wall Street Journal (blog)
By Costas Paris Greece's debt deal, though no panacea, buys the country more time in the euro-zone and counters early detractors who doubted Finance Minister Evangelos Venizelos could pull it off. Mr. Venizelos, a constitutional lawyer and brilliant ...

Euro zone's woes can't dampen car party
MarketWatch
Clearly, as the euro zone struggles to find a cure to its debt crisis and unemployment keeps climbing, consumers have more important things on their minds than buying a new car. So the top manufacturers are left to grapple with a glut of inventory, ...

Euro crisis unlikely to hit Obama re-election bid
PublicServiceEurope.com
Third, the Greek bond swap will effectively take the private sector out of Greece and eliminate another potential source of contagion from Europe to the global financial system. Certainly, there is plenty of scope for continuing volatility in Greece.

PublicServiceEurope.com

Is the Euro crisis a stress test for regulators like Sebi?
Moneycontrol.com
He points to the current Euro crisis saying it could have a major impact on economies like India. Sebi's chairman says, "The consequences will be on a variety of fronts. It will have an impact on the asset prices, it will have an impact on the asset ...

Eurozone: Greece's economic depression worsens
MindfulMoney
A large default does not hide Greece's continuing insolvency as her economic depression deepens, writes Mindful Money's Shaun Richards. Today has opened with news on the debt swap for Greece and it has turned out pretty much as I expected.

Market may be up, but the scars of 2008 financial crisis are fresh
Kingsport Times News
When the financial crisis struck that fall and stocks lurched up and down with nauseating speed, Cheryl, a former accountant, pulled the money out. Fearing that the next crisis was always around the corner, they have kept most of the money out.

Eurozone crisis 'removed' for now: IMF chief
Hindustan Times
International Monetary Fund President Christine Lagarde holds a briefing at the end of aeuro zone leaders summit in Brussels. The risk of crisis in the eurozone has been "removed," for now, IMF head Christine Lagarde said Thursday, with the Greek ...

Hindustan Times

Risk of euro crisis 'removed' for now, says IMF boss
Daily Nation
By AFP The risk of crisis in the eurozone has been “removed” for now, IMF head Christine Lagarde said on Thursday, as Greece rescue efforts showed signs of progress. “As we speak, it looks like it's going through,” said Ms Lagarde, ...

Daily Nation

Greece secures biggest debt deal in history
Albany Times Union
The radical swap aimed to put the country's debt-ridden economy on the road to recovery, and was a key condition to secure a euro130 billion ($172 billion) rescue package from other eurozonecountries and the International Monetary Fund.

Eurozone problems prompt short-term production cut at Michelin in Dundee
Scotland Courier
By Graham Huband, business editor The company said economic uncertainty in theeurozone had caused the situation but a spokesman for the Baldovie factory stressed there was no threat to the future of the plant or jobs from what is being viewed as a ...

Scotland Courier

2 Problems the Eurozone Can't Avoid
Moneyshow.com
I'm not talking about the Irish determination that they are going to hold a referendum on joining in on the Greek debt deal, and the reorganization of the Eurozone; I'm not talking about that. I'm not talking about the fact that the Spanish are going ...

Mortgage rates lower than euro zone
Irish Times
The Central Bank said the difference between Irish and euro zone mortgage rates reflected the higher percentage of Irish homeowners on tracker loans. Mortgage interest rates in Ireland are on average significantly lower than in other euro area ...

Irish Times

XE.com - U.S. money funds add euro zone debt in Feb-JPMorgan
U.S. prime money funds increased their holdings of euro zone bank securities in February, suggesting less fear of the euro zone debt crisis spiraling out of control, J.P. Morgan analysts said in a report released on Friday.
XE Forex News

SoberLook - Eurozone Consumer Enters Double-dip Territory ...
By Walter Kurtz
The tightening credit conditions in the Eurozone are taking their toll on the consumer. The unemployment rate is rising and is likely to keep rising further, given the messy labor laws in manyEurozone nations (it takes much longer to lay off ...
RiskCenter.com: Daily Risk News Feed

Understanding the eurozone crisis | Total Politics
Stanley Johnson, father of London Mayor Boris, reads into the origins of Europe's current plight.
Total Politics - the UK's best...

Money funds add euro zone debt in February: JPMorgan – forex.ch
By Forex.ch
Prime money funds increased their holdings of euro zone bank securities in February, suggesting less fear of the euro zone debt crisis spiraling out of control, J.P.. Follow this link: Money funds addeuro zone debt in February: JPMorgan ...
forex.ch

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