Category Archives: Sovereign Risk

Bank Exposure to Domestic Sovereigns

Posted on July 11, 2011 by macromon

Here at the Global Macro Monitor we perceive a rapidly changing financial landscape.  The concept of risk-free is being redefined as we write and analysts are now forced to look at the systemic risk caused by a banking system’s exposure … Continue reading →

Posted in Black Swan Watch, Bonds, Budget Deficit, Charts, Euro, Fiscal Policy, Sovereign Debt, Sovereign Risk | Tagged , , , , , | 2 Comments

Quote of the Day: Brussels, We Have a Problem

Posted on July 11, 2011 by macromon

According to current banking regulations, sovereign credits are considered “risk-free.”   This means that banks can take on as much sovereign credit risk as they like without setting aside any capital.  Under such a structure, selling short CDS protection is akin … Continue reading →

Posted in PIIGS, Policy, Quote of the Day, Sovereign Debt, Sovereign Risk | Tagged , , | Leave a comment

When Apple Leads….

Posted on July 7, 2011 by macromon

Apple is up almost 15 percent off  the June 20th low of 310 and leading the overall market higher.  This is the stock’s best move since last September.  We’ve posted several pieces on Apple’s market leadership (click here).  With no … Continue reading →

Posted in Apple, Black Swan Watch, BRICs, Budget Deficit, Charts, Economics, Sovereign Debt, Sovereign Risk | Tagged , , | 2 Comments

Aminio Fraga on Charlie Rose

Posted on July 1, 2011 by macromon

Great interview with our old friend and colleague Arminio Fraga,  former head of Brazil’s central bank,  Soros hedge fund manager, and now head of Gavea Investments.   Arminio is a Princeton Ph.D. economist, understands markets,  and an expert on Brazil’s economist. … Continue reading →

Posted in Equities, General Interest, Sovereign Debt, Sovereign Risk | Tagged , | Leave a comment

Why Europe Can’t Afford a Greek Haircut

Posted on June 29, 2011 by macromon

If a picture is worth a thousand words, the following chart from the IMF encapsulates all the analysis one needs to understand why Mr. Trichet and the rest of the Eurozone bureaucracy are so adamant about not letting Greece restructure … Continue reading →

Posted in Black Swan Watch, Bonds, Budget Deficit, Charts, Euro, PIIGS, Policy, Politics, Sovereign Debt, Sovereign Risk | Tagged , , , | 4 Comments

Chart of the Day: Greek Parliament

Posted on June 27, 2011 by macromon

(click here if chart is not observable)

Posted in Chart of the Day, PIIGS, Sovereign Debt, Sovereign Risk | Tagged | 1 Comment

Question of the Day

Posted on June 21, 2011 by macromon

Market’s are priced for a G-Pap vote of confidence and will most likely celebrate with a relief rally.  But the 12 billion euro question is can G-Pap win over the Greek street?   If you believe it, run, don’t walk to … Continue reading →

Posted in Black Swan Watch, Sovereign Debt, Sovereign Risk, State and Local Government | Tagged , | Leave a comment

Debt and Leverage in Advanced Economies

Posted on June 20, 2011 by macromon

The following is one of the most comprehensive snapshots of relative debt and leverage in the major advanced economies.   The source of the table is the IMF’s Global Financial Stability Report (page 11). We find interesting that U.S. debt held … Continue reading →

Posted in Bonds, Budget Deficit, Charts, Economics, Sovereign Debt, Sovereign Risk | Tagged , , , , , | 3 Comments

Chart of the Day: U.S. Federal Spending

Posted on May 25, 2011 by macromon

Great chart from Deutsche Bank showing a times series of U.S. Federal spending.  Note the “peace dividend” and decline in defense spending during the 1990’s, which was partially responsible for the Clinton surpluses.  The chart also illustrates where the reform … Continue reading →

Posted in Chart of the Day, Charts, Fiscal Policy, Sovereign Debt, Sovereign Risk | Tagged , | 1 Comment

Chart of the Day: PIIGS Retirement Age and Vacation Days

Posted on May 22, 2011 by macromon

Lots of push back to Angela Merkel’s “lazy Southern Europe” speech.   Here are a few interesting charts refuting the German chancellor’s notions which we found posted on Der Spiegel’s website.    (click here if charts are not observable)

Posted in Euro, Sovereign Debt, Sovereign Risk | Tagged , , | Leave a comment