Debt

Rome’s funding pain eases, but is not cured

28 Dec 2011

Italy’s funding costs halved in auctions on Dec. 28, as its bond market started to behave a bit more normally. Cheap ECB funds may have helped, as well as Rome’s new commitment to austerity. But while Italy has taken one step back from the abyss, it still faces huge hurdles.

Dubai debt still massive but not terrifying

8 Dec 2011

Sovereign and related debt have remained largely unchanged in the two years since the Dubai World crisis. Even so, the emirate hasn’t come close to exhausting its funding options. Today, Dubai holds more cards. But lenders shouldn’t bet haircuts are indefinitely off the table.

U.S. lawmakers squandering gift from markets

21 Nov 2011

Global investors have given Congress lots of rope to rein in long-term deficits before they enter crisis mode. The committee charged with the task failed to make any progress. So far, markets are enabling such inaction. Washington, and the world, won’t always be so lucky.

Jefferson County isn’t a recession victim

10 Nov 2011

The Alabama county’s bankruptcy stands to be the largest in U.S. history, but investors shouldn’t see it as a sign of more to come as municipalities suffer in the wake of the recent downturn. Corruption and woeful mismanagement sank the county, not recession and falling revenue.

Jefferies’ differences with MF Global are notable

3 Nov 2011

Both Wall Street brokers took advantage of larger rivals’ regulatory pain - and bragged about it. But Jefferies has stressed client, rather than prop, trading. Its finances are clearer too. These are important distinctions getting lost in the panic after MF’s failure.

Can Iceland be saved?

29 Jun 2009