«We had a strong first quarter and a softer second quarter as investors became concerned
about sovereign debt issues,»...
As I argued in my earlier post
about sovereign debt, this isn't quite true.
In the event of market - based concern
about sovereign debt focusing on Europe Britain had to escape from its position as one of the most vulnerable countries, he argued.
«What concerns
me about the sovereign debt markets is how quickly [bond risk] repricing can take place,» observes Busby.
Not exact matches
The eurozone's recovery from the
sovereign debt crisis has been
about improving situations in the economic bloc's peripheral economies like Italy and Portugal, and this new batch of uncertainty in Portugal's financial sector is not sitting well with investors.
Many were optimistic
about the future economic prospects in Lisbon before the
sovereign debt crisis, but the crisis and corresponding austerity measures have stifled its economy.
The new finance chief of Spain also told CNBC that the southern European economy has been growing at a solid pace of
about 3 percent in the last four years, but this doesn't mean that the problems raised during the euro zone
sovereign debt crisis are over.
A government that is
sovereign in its currency, has no foreign denominated
debt and a central bank that can issue its own currency does not have to worry
about someone else telling them that they need to raise their interest costs.
The latest cause for worry, as we write, is the warning by Standard & Poors that Italy's
sovereign debt rating of A + is at risk (a one - in - three chance) of being downgraded in the next 2 years, due to doubts
about the success of the government's
debt - reduction program.
On March 22 at 9:00 AM ECRI's Lakshman Achuthan will join a panel discussion
about the «Risks Beyond the Eurozone and the Threat of Contagion» during the Bloomberg
Sovereign Debt Conference.
The dollar extended losses against the euro Friday, after more details
about a new aid package for Greece came to light, increasing confidence in European policymakers» ability to handle the
sovereign -
debt crisis.
Before the European
sovereign debt crisis starting in 2010, Greece's economy represented
about 2 % of the eurozone's gross domestic product (GDP); after the crisis - induced recession, it accounts for even less.
In an unexpected move, Standard & Poor's cut its
sovereign debt rating on Turkey further into junk territory on May 1, citing widening concern
about the outlook for inflation amid a sell - off in the Turkish lira currency.
@Phil S: I was thinking
about the US, UK, Australia, Denmark, Switzerland, Sweden, Germany, Japan and other developed countries that have never defaulted on their
sovereign debt.
At last count, Greek
sovereign debt stood at
about 177 % of GDP.
Two key (related) themes echo through recent articles
about the Greek
sovereign debt crisis.
I would amend the statement
about sovereign defaults from «sensei» to cover only
sovereign issuers who issue
debt in their own currency.
To continue my last post
about the Mexican
sovereign debt structure, I will talk
about the international
debt issued by Mexico.