- 50% of Greek debt set to mature before 2015; UK is 32%.
- France next? Borrowing at 8% GDP; only countries higher are Spain, Greece, Ireland
- US Equity: eurozone sovereign debt overshadowed encouraging corporates
- Possible positioning for a European Central Bank rate cut? Current intention is to keep rates steady.
- 2007: 90% default of ABS CDOs (total market: 186bn); most toxic of assets; result of bad underwriting
- Past few weeks have seen a shift out of the euro and into the dollar; by worries of the eurozone being able to fund their deficits
- 7.6bn shorting the euro
- Germany, France most well positioned to bail out Greece. Unlikely; Ireland has enacted its own reforms to dig itself out of its hole. Impact on European banks would be massive.
- US: 1600bn projected deficit; Moodys will downgrade from AAA if economy doesn't grow; Credit traders give 5% chance of default in 5 years
- Average maturity of US Debt: 4.2 years
create a fungible, liquid market for longevity risk
- life insurance: hurt by young people who die too early and haven't paid enough premiums
- pension funds: hurt by older people who live past expectancy
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