Friday, January 27, 2012

Showdown on Greek debt

Greek Debt Wrangle May Pull Default Trigger
By Abigail MosesOpposition to payouts on Greek credit-default swaps from European Union policy makers is softening as disputes over a voluntary debt exchange threaten to push the nation into default.
Any agreement between the Greek government and the Washington-based Institute of International Finance on debt writedowns will only bind 50 percent of investors in the 206 billion euros ($270 billion) of notes being negotiated, Barclays Capital estimates. Hedge funds may resist a deal, seeking to get paid in full or compensated from insurance contracts.
Comment: Come on guys, take your 70 % haircut and move on.

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