Google Analytics

Thursday, July 28

28th July LATE


EURO CRISIS
Taboos still left: Eurobonds and reintroduction of national currencies
Europe’s Last Taboos – Project Syndicate

“..markets seem to be seeing is disaster on the periphery and the Japanification of the core. And I can’t say they’re wrong.”
Eurofail – Krugman / NYT



Nouriel Roubini’s good, concise column: “...quite generous to banks, and does not provide enough enhanced debt sustainability to Greece.”

Long and  somewhat technical piece that is of interest to only headstrong FI people trying to understand Greek bond swap.
A Greek bond swap oddity – alphaville / FT

FINANCIAL CRISIS

Highlights Nomura’s piece on what has happened to sov bonds after the AAA’s gets downgraded: yields fall (But is U.S. different?)
Chart of the EveningStone Street Advisors


Chinese credit rating agency says will cut US rating in any case early next week

Long story, briefly: if they can’t solve this when it is peanuts, how can they solve the debt/fiscal mess when in a decade or two it has become serious?

PIMCO’s chief executive and co-chief investment officer
 
Financial Stability Oversight Council’s 2011 Annual Report actually makes good points (warning about ETF’s, HFT, structured notes, collateralized commercial paper, repo market). I think I’ll read this.

OTHER
High level of margin debt, just like during previous market tops. I know, I posted the same chart yesterday. But you didn’t check that, did you?
2007 deja Vú? – the trader

Implied volatilities are bearish?
IV Skew Updated - MacroStory



EMERGING / COMMODITIES
India’s former finance/foreign/defense minister says nothing interesting but admits, as the headline says, that the road currently traveled will not accommodate future growth     
Asia’s BRICs Hit the Wall – Project Syndicate

Highlights from Citi’s piece point to Central and Eastern European countries being at most risk. How about all those cheap CHF mortgages for households?
Emerging Europe and eurozonitis – beyondbrics / FT

“Emerging markets are almost entirely the source of this increased demand, with China accounting for 41 percent of demand growth over that time period, the IEA forecast says”