A Bit More On NBG bonds…
Someone suggested that the ECB actually didn’t take the NBG bonds as collateral, but that the Greek Central Bank did. Where or how the Greek Central Bank got their hands on some Euros for NBG I don’t know, but suspect they got it from the ECB or other central banks via the “target2” facilities. This […]
Quick Look At National Bank Of Greece Bonds
It is worth taking a quick looks at these National Bank of Greece bonds. 1.925 billion Euro were issued in June 2011. Of course the underwriter was NBG itself, and the “Collateral Type” is “Govt Liquid Gtd”. I do not know for certain, but I suspect that NBG issued the bonds to themselves, got a Greek government guarantee (for […]
Will S&P Leave Italy Alone?
If I understand the process in Europe correctly, S&P has to provide 12 hour notice to the countries if they are going to change their ratings. S&P has Italy as A1 on negative watch. Moody’s is A2 with outlook negative. So S&P has Italy higher rated, so it would be weird if they didn’t downgrade […]
(BN) *AUSTRIA SAID TO LOSE AAA RATING AT S&P
That is 21.6 billion of the AAA EFSF guarantees. +——————————————————————————+ BN 01/13 15:51 *AUSTRIA SAID TO LOSE AAA RATING AT S&P +——————————————————————————+ Austria Said to Lose AAA Rating at S&P 2012-01-13 15:51:26.31 GMT By Janet Freund Jan. 13 (Bloomberg) — Link to Company News:{2539Z GR <Equity> CN <GO>} For Related News and […]
(BN) Greece Bank Creditor Group Says Talks ‘Paused for Reflection’
Paused for “reflection”? Does reflection mean check in with your lawyers what rights you have if they default? Or does reflection mean call the office and short stocks? +——————————————————————————+ BN 01/13 15:15 *IIF SAYS TALKS ARE `PAUSED FOR REFLECTION; +——————————————————————————+ Greece Bank Creditor Group Says Talks ‘Paused for Reflection’ 2012-01-13 15:19:37.640 GMT By Keith Campbell […]
Why Can’t Rating Actions Be Scheduled?
I’ve asked this before, but I will ask it again, why can’t Rating Actions be scheduled like any other important piece of economic data. Make rating action announcements come out at 11 am NY time for example. The the agencies are taking any action, they can release it at 11 am, if they don’t have […]
What Downgrades Are “Priced” In?
Rumors of European downgrades are out there again today, and it feels pretty real. Multiple sources, no angry French finance ministry employee denying them, so we will see what, if anything is priced in. I’m hearing from a lot of people that a 1-notch downgrade is “priced” in. I’m not sure that is true. So […]
Daily Credit ETF and Index Summary (12.01.13) – Mixed Signals
Before the downgrade rumors surfaced, Europe was tighter this morning, though off the best levels. Main was outperforming. The US CDX Indices which performed well yesterday were all a bit weaker this morning – seems like credit traders also had on the “decoupling” trade and are finding that it may be wrong and crowded. I […]
It’s An Upside Down World…Or So Much For “Decoupling”
Italy has “successful” bond auction and for all intents and purposes, JPM misses earnings. Stocks failed to respond to a “successful” Italian bond auction. The market isn’t giving them much credit for placing bonds that mostly mature in the timeframe covered by LTRO. The auction results are good, but the market is taking a wait […]
Daily Credit ETF and Index Summary (12.01.12) – Fund Flows Continue To Be Strong
HYG and JNK have now attracted more than $1.3 billion yet are both struggling to show gains. The premium has dropped as the prices have dropped while NAV has crept up. Given the flows, and the general view that High Yield Corporate Bonds offer good value, I’m surprised we haven’t seen a spike higher in […]