LONDON, Sept 18- Investors are starting to price the risk of Russia's credit rating falling to junk if Western sanctions and Moscow's response plunge the economy into recession and deplete its $450 billion reserves. Moody's, which rates Russia Baa1 or three notches above junk, said this week that the latest sanctions were credit negative.» Read More
Representatives of Greece's private sector bondholders will meet Wednesday to discuss how and whether to continue talks on a bond swap after the EU toughened its demands, a person close to the investors said.
Billionaire investor George Soros believes the euro zone bond market is facing a similar situation to the banking system in 2008 and wants the European Central Bank to step in to stop a self-fulfilling crisis of confidence.
A positive feedback loop between banks and weak sovereigns is emerging, with a potentially calamitous effect on the euro zone and the global economy, Martin Wolf writes in the FT.
The European Central Bank was buying Italian and Spanish government bonds in the markets on Thursday, traders told CNBC.
States with more federal workers are now on credit watch, says Alexandra Lebenthal, Lebenthal & Co.
Markets are likely to keep up the pressure on Italy and Spain and the European Central Bank seems to be the only authority that could act quickly, analysts told CNBC.com Tuesday.
Bankers believe that an additional disclosure requirement, relating to previously unpublished details of banks’ credit exposures, could trigger approaches for credit portfolios from specialist buyers. The FT reports.
The Greek Parliament has voted to back a package of deep spending cuts that should go some way in clearing a path for a second bailout for the country.
Enjoy the coming slump. That is not what the Bank for International Settlements says to the US and other over-indebted economies. But it is what its latest annual report implies, writes FT columnist Martin Wolf.
Commodity prices are in an upward trend despite the dramatic falls witnessed in recent days, and will rise in US dollar terms over the longer term, while the situation in Europe "does not look good," Templeton Emerging Markets Executive Chairman Mark Mobius told CNBC in an interview.
Discussing high yield bond strategies with James Keenan, BlackRock head of leveraged finance.
The Fed's monetary easing has caused a domino effect in the markets: As investors crowd into the riskier asset classes, they pull returns down, making it even harder to meet yield targets.