Kudrna's Stock Market Talk

Quote of the Day:

A stitch in time saves nine

Old English Proverb (more…)

Quote of the Day:

We’re not saying that saving solves all problems…

…[but], you can’t spend more than you take in. You can’t live your whole life this way. Everybody knows this…

Angela Merkel (more…)

Quote of the Day:

A tiger is difficult to capture once it is set free.

Paraphrasing comments on inflation by Wen Jiabao – Chinese Premier (more…)

Quote of the Day:

Fitch considers that the proposal to reduce Greece’s public debt burden via a debt exchange with private creditors will, if completed, constitute a rating default, and result in the country’s IDR being lowered to ‘Restricted Default’ (‘RD’) upon completion. The ratings of GGBs affected by the exchange, including those not tendered but restructured under CACs, which are expected to be imposed retrospectively on bonds issued under Greek law, will also be lowered to ‘D’ (‘default’) at this time.

Shortly after completion of the exchange with the issue of new securities, Greece’s sovereign rating will be moved out of the ‘RD’ category and re-rated at a level consistent with the agency’s assessment of its post-default structure and credit profile.

Fitch regards the imposition of retrospective CACs as a material adverse change in the terms and conditions of GGBs in the context of an imminent debt exchange and confirms its assessment that the exchange will be distressed and de facto coercive on private holders of Greek bonds. Nonetheless, the primary credit event is the exchange itself and Fitch will rate Greece and its securities accordingly.

Fitch Research [Emphasis mine] (more…)