Abaddon_Ambrosius
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Subject:
FINALLY talking reality; Greece rating cut to "default"
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Article posted:
Greece’s credit ratings were cut to “Selective Default†by Standard & Poor’s after it negotiated the biggest sovereign debt restructuring in history.
S&P dropped Greece’s rating from CC, two levels above default, after the government added clauses to its debt designed to mop up investors unwilling to take part in the exchange, the New York-based company said in a statement today.
The downgrade follows a reduction last week by Fitch Ratings to C, while Moody’s Investors Service has said it will cut the nation to its lowest rating. Greece published the formal offer document last week for its agreement to exchange bonds for new securities, with investors taking a haircut of 53.5 percent. The restructuring uses so-called collective action clauses to discourage holdouts, the use of which would trigger credit- default swap insurance contracts on the nation’s debt, according to the rules of the International Swaps & Derivatives Association.
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Brother_Tempus
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Subject:
FINALLY talking reality; Greece rating cut to "default"
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Now we wait for the other 2 and let the fallout of those holding Greek debt to now have to pile out to meet collateral/captial requirements and all those derivatives would now get called on
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Testerion
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Subject:
FINALLY talking reality; Greece rating cut to "default"
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selective default != default
Theres two steps difference!
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Brother_Tempus
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Subject:
FINALLY talking reality; Greece rating cut to "default"
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A nice flowchart of how things could proceed over the next 30 days
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Brother_Tempus
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Subject:
FINALLY talking reality; Greece rating cut to "default"
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Testerion posted:
selective default != default
Theres two steps difference!
Too late, http://www.reuters.com/article/2012/02/28/ecb-greece-collateral-idUSL5E8DS1MF20120228
The ECB has removed the eligibility of Greek Bonds to be used as collateral .. ( ie no more borrowing for Greece)
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i think we need more BT on page 1 - FighterUSAF
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Abaddon_Ambrosius
Title: Retired Theurgist TL
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Subject:
FINALLY talking reality; Greece rating cut to "default"
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Testerion posted:
selective default != default
Theres two steps difference!
Article posted:
The restructuring uses so-called collective action clauses to discourage holdouts, the use of which would trigger credit- default swap insurance contracts on the nation’s debt
That's the boundary that matters. Legally this is a default as of now, with all the implications thereof. As people who have been watching have known for about 6+ months now. The only question now is 'what flavor and how severe.'
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In the immortal words of Socrates - "I drank what?"
"God you guys suck at the internet - how can you fail to locate porn?!" - Eternal_Midnight
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Brother_Tempus
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Subject:
FINALLY talking reality; Greece rating cut to "default"
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Abaddon_Ambrosius posted:
That's the boundary that matters. Legally this is a default as of now, with all the implications thereof. As people who have been watching have known for about 6+ months now. The only question now is 'what flavor and how severe.'
Hence the flowchart I posted ...
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