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debt

Selling the crown jewels… till when?

Italy and Greece had paved the way in 2011 when the sovereign crisis hit hard. The governments conjured up the idea to sell national treasures such as islands or historical buildings. The idea was to raise the financial value of historical or natural assets as a collateral to debt. A short-sighted policy that was more […]

By |April 19th, 2016|Categories: Analyst's Insight|Tags: , , , , |

Russia Eurobonds could be more attractive thanks to… Western sanctions

As everyone knows, Russia’s main sources of revenue come from oil and gas exports. Indeed, oil and gas exports accounted for more than two thirds of total exports in 2014. Given the sharp drop in oil prices since late 2014, the trade surplus contracted sharply and consequently, the budget deficit increased to represent 2,4% of […]

By |April 8th, 2016|Categories: Analyst's Insight|Tags: , , , , |

German ‘bail-in’ plan for government bonds risks blowing up the euro

A new German plan to impose “haircuts” on holders of eurozone sovereign debt risks igniting an unstoppable European bond crisis and could force Italy and Spain to restore their own currencies, a top adviser to the German government has warned. ñIt is the fastest way to break up the eurozone,î said Professor Peter Bofinger, one […]

By |February 16th, 2016|Categories: News|Tags: , , , , , |

GCC debt to double, assets to slide by 2020: report

Public debt of the oil-rich Gulf states is expected to double and assets decline by a third by 2020 as they seek to finance budget deficits due to sliding prices, a report said Tuesday. After having posted massive deficits of $160 billion last year and faced with a $159 billion deficit in 2016, the six […]

By |February 16th, 2016|Categories: News|Tags: , , , |

Tax hikes ‘self defeating’ when trying to cut government debt: ECB paper

Raising taxes is “self defeating” when a country tries to bring down the ratio between its public debt and economic output, according to a research paper published by the European Central Bank on Monday and based on the euro zone’s recent history. The ECB, along with the European Commission and the International Monetary Fund, has […]

By |February 10th, 2016|Categories: News|Tags: , , , , |

China’s Debt Default Risk Climbs to Highest Since June 2013

The cost of insuring Chinese sovereign debt against default climbed to the highest level since a record cash crunch in June 2013 as a slowing economy erodes confidence in the nation’s assets. Credit-default swaps protecting government bonds against non-payment for five years rose for a fourth day on Wednesday to 140 basis points, according to […]

By |February 10th, 2016|Categories: News|Tags: , , |

Portugal’s anti-austerity budget provokes Brussels showdown

Portugal’s new Socialist government faces an embarrassing rejection of its first “anti-austerity” budget by the European Commission on Friday after eleventh-hour talks failed to break a stalemate over additional cuts needed to bring Lisbon in line with EU deficit rules. Portuguese officials expressed confidence they would overcome objections from the commission, which last week warned […]

By |February 10th, 2016|Categories: News|Tags: , , , , |

Abu Dhabi to Take Billions From ADIA for Debt, Fitch Says

Abu Dhabi Investment Authority’s assets will probably shrink by billions of dollars by the end of this year as the emirate’s government taps its sovereign-wealth fund to bridge a deficit brought on by low petroleum prices, Fitch Ratings Ltd. said. Assets will drop to $475 billion at the end of this year, from an estimated […]

By |February 10th, 2016|Categories: News|Tags: , , , |

Climate Change and Sovereign Debt

The regulation of climate change as a matter of securities law is very odd. We’ve talked before about Exxon Mobil, which has been accused of covering up research about the risks of climate change in order to sell more oil. If those accusations are true, then that was a bad thing to do. But the […]

By |January 27th, 2016|Categories: News|Tags: , , , , |

Default risk in energy debt seen as higher than Great Recession

Markets are pricing in a higher default risk for the energy sector than they did at the peak of the Great Recession, according to data from Schwab Center for Financial Research and Barclays. As continued concerns about oil’s global supply glut pushed crude futures below $27 a barrel, sparking a global stock selloff, energy spreads […]

By |January 27th, 2016|Categories: News|Tags: , , , , |