Note The frantic flight to liquidity and solvency
Some markets have been exhibiting dysfunctions for nearly 4 years. The flight to liquidity and compliance with solvency requirements of banks and states with financial issues, have been - and still is - only ensured by non-conventional financing provisions and emergency (...)
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Opinion Central Banks : the global financial system trashcans ?
Institutionalized monetization condemns central banks to become the international financial system trashcans and, despite German opposition, it is likely to be the same for the ECB.
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Strategy Buy in may and go away
According to Mandarine Gestion, current valuation levels in the banking sector constitute opportunities rarely seen over a medium-term horizon. However, over the short term, investors are preferring to focus on two factors while at the same time exaggerating in our view (...)
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Opinion Greece: awaiting the inevitable
The credit default swap market is pricing in a 65% probability of a default within the next five years.
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Note Rating Agencies
The American case during August 2011 and that of France in January shows that the loss of an AAA rating does not necessarily lead to a higher interest rate adjustment.
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News Gold as collateral for a participation in the Greek support plan
Will Finland jeopardize the Greek plan? The country requires collateral in exchange for its participation in the support plan. The German labour minister, Ursula Von Der Leyen, has agreed to those terms…
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Note Euro zone bailout plans: origin and utilization
Back on bailout plans granted to countries in the Euro zone encountering severe fiscal deficits since May 2010. How are tens of billions Euros raised, what are they for, and mainly, are those amounts enough to re-establish the public finances and stabilize those countries (...)
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Opinion The never ending story
The fall-out from the Lehman default in 2008 should remind everybody that a negative feedback mechanism into other parts of the financial system and the real economy can create a negative-sum game for all parties (...)
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Strategy Nordic Sovereign bonds, the last safe investment in Europe?
The yield of the Swedish 10 year notes fell to a new historical low. A move which indicates that Sweden is viewed by Investors as a new hedge…
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News Investors welcome the issuance of European Union’s bonds for the bailout of Ireland
The market welcomes, on wednesday, the first wave of bonds issued by the European Union to raise funds for Ireland.
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Kiosk Understanding the eurozone crisis and its various facets
The current crisis is multiple. Initially sovereign and financial, it then became a social and political crisis. These changes do not facilitate the assessment of the situation, let alone the implementation of solutions. Back on the various facets of the (...)
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Note Challenges for Europe’s banks
Even in the seemingly unlikely case that a comprehensive solution to the sovereign crisis is found, the changed regulatory backdrop is a major challenge for the banks, and probably for the economy as a whole.
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Opinion The Euro will survive, but not the current Euro zone !
If the existence of the euro is not challenged, it is the case of the euro zone in its current configuration. In the same way that cohabitation between countries with maintaining parity exchange had become impossible in the EMS, cohabitation has become impossible within (...)
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News Sarkozy wants major changes in commodities markets !
Sarkozy also told speculators to be prepared for big losses if they bet against the euro
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Note Survey: European investors are optimistic for the future of the Euro
It emerges from an poll, conducted by the Global Alliance of Investors, dealing with institutional investors in Europe, that 80% of those questioned, believe in the ability of the euro to cope with current challenges. British investors are less (...)
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News
Greece: a possible lengthening of debt repayment -
November 2010
