Telephone: 484-278-4073
Email: richard@rhodes-capital.com
Web Address: http://www.rhodes-capital.com
WORLD MARKETS ARE LOWER OVERNIGHT as
we arrive on Monday to concerns regarding Greece and
the ISDA decision that there will be a credit event in Greece
given the current circumstances. This is giving cause to
concern about Portugal, Spain and Italy – with 3-year and
5-year note yields rising in Portugal above 16%, while 10-
year paper in Spain is back above 5.00% to 5.04%. Italy is
on firmer footing, with 10-year yields at 4.88%. The question
everyone is bandying about is whether the Greek situation
has been “ring-fenced” or not; and whether private
investors are willing to fund either Portugal or Spain going
forward given private investors will be subordinated to the
“official European” creditors – in essence meaning that if
haircuts are required – then private investors will take them
– not the official creditors. There isn’t much of
a carrot to buy high yielding Portuguese or
Spanish debt is it.
More here....
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