Who/What is Driving European Sovereign Spreads?
Posted by Larry Doyle on April 27th, 2012 9:11 AM |
The center of our global financial crisis squarely rests upon the Euro-zone in general and a number of peripheral sovereign states specifically. The movement in spreads within this market are often vicious.
The European Central Bank has thrown the kitchen sink in the form of its 3-year LTRO (long term refinancing operation) at the massive debt problem. The LTRO aside, do you get the sense that there is a far greater force at work behind the scenes driving these markets? I do. Who and what are really driving spreads within the Euro-zone?
Let’s navigate as the Journal of International Money and Finance addresses this critically important topic in its April 2012 issue. (more…)
Tags: Anne-Lauren Delatte Rouen Business School, Antonia Lopez-Villavicencio of University of Paris North, ban on naked CDS, cds vs cash basis, cds vs underlying cash bonds, credit derivatives, EU, Euro PIIGS, Euro-zone, European CDS, European PIIGS, European sovereign spreads, European Union, France sovereign spreads, Goldman Sachs, Greece sovereign spreads, Ireland sovereign spreads, Italy sovereign spreads, Journal of International Money and Finance, JP Morgan, long term refinancing operation, LTRO, Mathieu Gex University of Grenoble, naked CDS, PIIGS, Portugal sovereign spreads, Rouen Business School, sovereign spreads in Europe, Spain sovereign spreads, speculative trading of CDS
Posted in Euro, European Central Bank, European Union, General | 1 Comment »