People are still wondering what caused the big surge in Italian and Spanish government bond yields back in July that lurched the Eurozone debt crisis into the current very serious phase (eg see here). I suspect that, if anything, the…
Tag Archives: sovereign debt
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There’s a very interesting article in the British Airways in-flight magazine this month by Tim Harford, also known as the Undercover Economist in his FT column. In it, he points out that Benford’s Law showed that Greece’s reported macroeconomic statistics…
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There has been a lot of press coverage about the proposal to turn the existing EFSF (European Financial Stability Facility) into a monoline insurer of sovereign debt, where the new structure would be called the European Sovereign Insurance Mechanism (ESIM)….
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Forget stress tests – ring fencing banks from sovereigns is the real issue
- Topics
- debt, EBA, Europe, European banks
Posted July 19th, 2011
So the results of the bank stress tests are out. Do they add anything from an investor viewpoint? Well, despite the best efforts of the European banking Authority, we didn’t get the harmonised EU data we were hoping for. To…
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European sovereign debt fears – limited impact on European corporate bond markets
- Topics
- corporate bonds, Europe
Posted May 4th, 2010
Strong earnings results, low inflation expectations and a view that the ECB will have to keep interest rates lower for longer to support the economic recovery has seen demand for European corporate bonds remain fairly robust. That is not to…
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Exactly one year ago, an outbreak of flu in Mexico led to fears of a global pandemic. ‘Swine Flu’ did indeed spread around the world, however for most countries it had only a limited effect on economic output. We are…
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Happy New Year. Over the past couple of weeks, the cost of buying protection to insure against a default by the UK government has risen to exceed the cost of insuring a basket of European investment grade companies. The chart…










