LONDON, April 16- Default insurance markets show no obvious concern at the growing risk that Greece will leave the euro zone, suggesting investors can now contemplate a future for the currency union without Athens. Default probabilities derived from credit default swaps-- seen as the purest gauge of credit risk-- have fallen this year in Italy, Spain and Portugal...» Read More
The French bank Credit Agricole is planning on major changes to the way it operates in order to avoid new capital requirements being imposed by global financial regulators.
Economic decision-makers are more optimistic than two months ago. The main reason is the belief that the European Central Bank, under the shrewd leadership of Mario Draghi, has eliminated the risk of a financial implosion in the euro zone. As Mark Carney, the respected governor of the Bank of Canada and Draghi’s successor at the Financial Stability Board, remarked at the World Economic Forum in Davos: “There is not going to be a Lehman-style event in Europe. That matters." The Financial Times reports.
The European Central Bank won't solve the euro zone's debt crisis as long as the European Union behaves like a "dysfunctional" family, Bill Gross, Pimco founder and co-chief investment officer, told CNBC on Tuesday.
The first mistake was to try to arrange a voluntary haircut in the first place, when the Greek government should simply have defaulted.
A deal with private investors to swap Greece's debt to a more manageable burden is close to being concluded and the next three days are crucial, Olli Rehn, the European Union's monetary affairs commissioner, said during a debate hosted by CNBC in Davos.
A couple of years ago, the words “American consumer” cast a shadow over global markets. No wonder. Back in the days of the credit bubble, American consumer borrowing helped to create a crazy debt binge, the Financial Times reports.
Shorting the credit of companies positioned to do badly from a Chinese slowdown has proved to be one of the hedge fund industry’s most successful trades of 2011. The Financial Times report.
China's move this week to keep its economy afloat isn't getting the big headlines that Europe got, but it may be more significant for the world economy. Here's why.
European finance ministers are expected to approve today a plan to leverage—or increase the firepower of—the EU rescue fund, known as the European Financial Stability Facility (EFSF).
Jefferies finally seems to be winning the battle against its critics—and the shorts.
Earlier this year, Deutsche Bank quietly decided to reduce its exposure to Italian government bonds. But it did not do that by simply selling debt; instead it achieved this partly by buying protection against sovereign default with credit derivatives contracts. The FT reports.
Some of the hedge funds that made the biggest and most sophisticated bets against European sovereign debt began reversing those trades last week.
Over the weekend, Gretchen Morgenson of the New York Times penned a column explaining what it was that doomed MF Global.
The agreement on the size of the haircut on Greek debt banks will take could have serious consequences for all the so-called PIIGS according to Carl Weinberg, the chief economist at High Frequency Economics.
Dismay over widening fissures in the European bailout plan sent investors fleeing stocks and into the relative safety of U.S. Treasurys Tuesday.
Fitch ratings agency says Greece's credit grade will remain low even after its debt load is cut as part of a European plan to fight the financial crisis.
Austrian bank Erste announced on Friday that it had drastically reduced its credit default swaps (CDS) portfolio and that it would close it by the end of the year, after valuing it based on what it would be worth in the market - known as marking to market - earlier in the month.
The European debt crisis is worrisome but it is unlikely to pose a danger to major banks on the continent, Michael H. Tomalin, CEO of the National Bank of Abu Dhabi, told CNBC.
If European leaders succeed in putting in place a fifty-percent haircut on Greek sovereign debt without triggering credit default swap payments, they may end up destroying the CDS market altogether.
It was a few minutes after noon and I was late to meet a young hedge fund manager I call the Demon.