European Sovereign Bond Protection Facility Launched, EFSF Says
Finally. Will be interesting to see if this really works. I find it hard to get excited about first loss protection from a bunch of countries that dont want to lose money and don’t think they can. Maybe they will make a law that retroactively makes payments from EFSF illegal?
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BFW 02/17 15:29 European Sovereign Bond Protection Facility Launched, EFSF Says
BN 02/17 15:27 *EUROPEAN SOVEREIGN BOND PROTECTION FACILITY LAUNCHED, EFSF SAYS
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European Sovereign Bond Protection Facility Launched, EFSF Says
2012-02-17 15:34:06.749 GMT
By Jones Hayden
Feb. 17 (Bloomberg) — The European Financial Stability
Facility said it has launched a program that will be able to
provide partial insurance for sovereign bonds of a euro-area
nation.
The European Sovereign Bond Protection Facility would offer
insurance certificates for newly issued debt. The certificates
would give the holder an amount of fixed-credit protection of 20
percent to 30 percent of the principal amount of the sovereign
bond, the EFSF said.
The partial risk protection is designed to be used
primarily under precautionary programs and is aimed at
increasing demand for new issues of euro-area nations and
lowering funding costs, the EFSF said. The program is one of two
leveraging mechanisms in development and must be requested in
order to be used.
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