Archive for euro sovereign debt crisis

What EZ Bond Yields Imply About S&P Downgrades

Since Standard & Poor’s cut the ratings of 9 Eurozone countries, the euro has done nothing but rally. One of the main reasons why the EUR/USD has been so resilient is because the downgrades had very little impact on European bond yields. French and Spanish bond yields have increased but by less than [...]

PIIGS - Italy Sovereign Debt Outstanding

Contagion fears have rattled the markets today with everyone worried about the crisis spreading to Italy. The reason why investors are so nervous today is because the Italian economy and its total amount of debt outstanding far exceeds that of Greece. The following chart shows the total amount of foreign claims on [...]

EUR: 6 Hurdles to Overcome Greek Debt Crisis

Why has the rally in the EUR been so lackluster? Because there are a still 4 3 more hurdles to overcome before we can put the Greek debt crisis behind us.
The Greeks have jumped over 2 hoops on their own with one more expected to be cleared once the Greek implementation vote is completed [...]

BNN Video Interview: Outlook for EUR, USD

I was on the Business News Network this morning talking about Greece and the outlook for the euro and U.S. dollar. Click on the image to access the video

What the Latest CDS Spreads Show about EZ Concerns

The euro has weakened this morning on fresh concerns about Ireland and Portugal who is scheduled to have an austerity vote this week. The following table of 5 year CDS spreads show that spreads of Portugal and Ireland have widened materially, reflecting a greater risk of a bailout. Ireland’s CDS spread is nearly [...]