Posts Tagged ‘Luxembourg’

Notes From Underground: Hey, Mario Draghi! UNPACK THE SPEEDO AS THERE WILL BE NO SUMMER VACATION

July 23, 2012

The ECB will be visiting Spain but it will not be heading to the beaches. The EUROPEAN DEBT markets were a problem today and not because of the SPANISH 10-YEAR. Today it was the SPANISH TWO-YEAR NOTE that bore the brunt of investor angst. The short-duration paper was 88 BASIS POINTS higher as the 2/10 curve collapsed 55 basis points: FRANKFURT WE HAVE A PROBLEM. President Draghi, as an ex-GOLDMAN banker you well understand that when the markets sense weakness an attack on the soft spot is imminent. The action in the SPANISH DEBT markets is the first warning sign.

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Notes From Underground: Juncker Bonds, Eurospeak for Junk Bonds

December 9, 2010

The biggest story making the rounds is the op-ed in Wednesday’s Financial Times by two European heavyweights: Finance Ministers Giulio Tremonti of Italy and Jean-Claude Juncker of Luxembourg. In the FT piece, they argue for the ECB and Ecofin to get behind a push for a EUROBOND that is backed by the entire Eurozone¬†and guaranteed by its coffers. While a good idea in theory, the Germans immediately said NEIN to the idea as they realized that they would be the one holding the bag for the entire project.

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