Category Archives: Sovereign Risk

Euro Fracture: Angry Greeks

Posted on April 20, 2011 by macromon

The following article was posted today on SpiegelOnline and reflects the toxic and fractious politics in the Eurozone.   Whether it is the historic turnout for the True Finns on Sunday or the Angry Greeks suing German newspapers,  Europe is, at … Continue reading →

Posted in Black Swan Watch, Currency, Euro, Sovereign Debt, Sovereign Risk | Tagged , , , , | 1 Comment

Euro Fracture: Foreign Bank Exposure to GIPs

Posted on April 15, 2011 by macromon

Great chart from the Economist of foreign bank exposure to Greece, Ireland, and Portugal (GIP) and explains why “restructuring” is so taboo with European policymakers. The Greek sovereign credit curve is inverted with the 2-year now yielding around 18 percent … Continue reading →

Posted in Euro, Fiscal Policy, PIIGS, Sovereign Debt, Sovereign Risk | Tagged , , , , , | 1 Comment

Euro Fracture: Greek Restructuring? – German FinMin

Posted on April 14, 2011 by macromon

German Finance Minister Wolfgang Schaeuble raised the specter of a Greece restructuring in an interview with German newspaper Die Welt.   Yields on Greek 10-year bonds jumped to 13.26 percent and the two-year note yield surged 103 basis points to 17.96 … Continue reading →

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Components of the 10-Year Treasury Yield

Posted on April 13, 2011 by macromon

An interesting chart from the IMF showing the components of the 10-year Treasury yield.   Note how oxymoronic credit risk (in pink)  crept into the “risk-free” 10-year rate starting around the collapse of Bear Sterns.   The IMF opines on what has … Continue reading →

Posted in Bonds, Budget Deficit, Fiscal Policy, Sovereign Debt, Sovereign Risk | Tagged , , , | 10 Comments

Chart of the Day: Fed Ownership of the Yield Curve

Posted on April 11, 2011 by macromon

We’ve updated our chart illustrating the Fed ownership of the U.S. yield curve.   We’ve also included the percentage of total maturities the Fed owns in each year from the April 2011 data and December 2010 data.   Most of POMO buying … Continue reading →

Posted in Bonds, Budget Deficit, Chart of the Day, Commodities, Credit, Sovereign Debt, Sovereign Risk | Tagged , , , , | 1 Comment

Quote of the Day: Der Spiegel Headline

Posted on March 24, 2011 by macromon

“At Some Point, People Will Speculate against Germany’ – Der Spiegel

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Stronger Euro Will Slaughter the PIIGS

Posted on March 22, 2011 by macromon

The Euro keeps moving higher on expectations of an ECB interest rate hike and what is beginning to appear almost terminal dollar weakness.   The export destination mix of  Ireland, for example, is around 60 percent to the EU 27  and … Continue reading →

Posted in Black Swan Watch, Charts, Currency, Euro, Sovereign Debt, Sovereign Risk | Tagged , , , | Leave a comment

Euro Fracture: A “Tea Party” Revolt?

Posted on March 9, 2011 by macromon

Much has been written about the growing anger and political strife within the highly indebted European periphery.   The FT reports today about the growing anger and resentment in the countries financing the bailouts, Even among Brussels’ tightly-knit cadre of … Continue reading →

Posted in Euro, Fiscal Policy, Geopolitical, Monetary Policy, PIIGS, Sovereign Debt, Sovereign Risk | Tagged , , | 3 Comments

Soros: Regime Change in Iran, Bond Crisis is U.S.

Posted on February 20, 2011 by macromon

Fareed Zakaria discusses current events with George Soros on today’s GPS.   Click here for the entire interview.   It’s well worth your time. Money Quotes: Comparison 1989 fall of the Berlin Wall and Middle East Uprisings SOROS: It is very similar. … Continue reading →

Posted in Fiscal Policy, Geopolitical, Sovereign Debt, Sovereign Risk, Uncategorized, Whales | Tagged , , , | Leave a comment

Weber’s Exit Highlights Merkel’s Euro Problem – Der Spiegel

Posted on February 15, 2011 by macromon

A must read from Der Spiegel of the inside account of Axel Weber’s resignation. Bundesbank head Axel Weber’s resignation has made one thing clear: The debate about the future of the euro has become intense — and bitter. Indeed, Chancellor … Continue reading →

Posted in Black Swan Watch, Currency, Euro, Monetary Policy, Sovereign Debt, Sovereign Risk | Tagged , , , | 2 Comments