“The situation in Europe is deteriorating today, with yields on fringe eurozone debt spiking and the price of CDS rising.
Fitch just announced that a Greek debt restructuring would be considered a default, while simultaneously downgrading the country’s debt. French Finance Minister Christiane Lagarde has said Greece is in danger of default, and needs to do more before it gets more bailout funds, according to Bloomberg. Lagarde, and France, were previously believed to be willing to give Greece more aid now.
Ireland‘s ability to sell its sovereign debt is “elusive” and the country needs a new plan to deal with its crisis, according to the IMF. IMF officials are calling on the EU to adopt a more aggressive approach over dealing with the country’s banking sector, including more ECB financing.
The comments have sent Irish CDS prices up 13 bps to 640, according to Bloomberg.”
If you enjoy the content at iBankCoin, please follow us on Twitter
