Every player in fixed income hangs on the doings of Janet Yellen and Mario Draghi like teenagers with Taylor Swift and Justin Bieber. The focus is all on exogenous factors, says Jason Voss, CFA. What is not being accounted for? Endogenous criteria like the quality of the business models of the credits or whether a portfolio is diversified enough.
Gustavo Teruel, CFA, recently spoke with Martin Wolf of the Financial Times about his latest book, recent developments in the eurozone, and the global investing outlook more generally.
Imagine we are sometime in the distant future. A company has suffered years of declining earnings, and the dividend is at risk. Then, through a stroke of luck, people come to covet the company’s bonds as wallpaper material.
The recent “bail-in” of Cyprus by the EU, IMF and European Central Bank troika forced depositors in Cyprus banks to turn over about 40% of their assets to the banking system. This action hasn’t caused a bank run in the greater eurozone yet, so we asked professional investors why this is the case.
Finance professor Amir Sufi of the University of Chicago Booth School of Business argues that the severe U.S. recession and Europe's ongoing economic woes can best be explained as aggregate demand and leverage problems that cannot be effectively treated through monetary policy initiatives alone.
Most commentators trace the beginning of the European sovereign debt crisis to 5 November 2009, when Greece revealed that its budget deficit was 12.7% of gross domestic product (GDP), more than twice what the country had previously disclosed. However, the real origins of the crisis can be traced to the very structures that govern Europe's institutions.
Various proposals to resolve the European sovereign debt crisis have not dealt with many nagging issues. Here is a list of major unresoved issues in the European sovereign debt crisis.
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