Market Currents
The 85.8% participation rate in Greece's PSI allows the country to avoid a messy default, but...
-
Friday, March 9, 2012, 7:12 AM ETThe 85.8% participation rate in Greece's PSI allows the country to avoid a messy default, but the country's activation of collective action clauses (forcibly bringing participation to 95.7%) likely forces the ISDA's hand in declaring a "credit event." This move would trigger payouts on CDS - likely not a major event as a sizable chunk of these contracts have already been closed out. The ISDA Determination Committee meets at 8 AM ET.
Other date
Latest Global Articles
This news story has 4 comments:
Of course, with Greece, essentially everything rumor.
Greece has threatened to default on the foreign law paper, but all of their debt now is new bonds and troika loans, so it won't be a big deal, other than paying a lot of lawyers for a lot of years.
Domino effect just may still occur, due to the widely known and very transparent, yet unregulated practice of netting.
Systemic risk is there, just under the surface.
Why did Deutsche Bank just borrow 10 Bil Euros?
They have argued against borrowing for years, and now have come to beg.
What gives? Why now?
As one (1) of two (2) German Retail Banks left, (the other being Commerzbank, also teetering on insolvency) Deutsche Bank is at MASSIVE risk.
Deutsche Bank is levered 60:1 on a TCE/assets basis, and that its Basel “risk-weighted” assets are only $450 billion, but actual balance sheet assets are $3 Trillion?"
* Due to the Basel standards, which count sovereign and other AAA assets as risk free, Deutsche Bank has $2.5 trillion of assets with zero capital backing.
With profits down 70% Q4, and only 5 Bil Euros profit for the year, down more than 5 Bil Euros,.............. Deutsche Bank looks to be in serious trouble.
Most of the Major German Industrials, bank with Deutsche Bank.
When Deutsche Bank goes, so do the Major Industrials, and it's bye bye Germany.
NOTE:
That is not a bad thing, many have warned them about their sense of "pseudo moral superiority", often demonstrated at the cost of the periphery.
DISCLAIMER: No German Investments held due to common sense, and historical public records available.