Kudrna's Stock Market Talk

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…)

Quote of the Day:

No No No!

Margaret Thatcher – British Prime Minister (1975 – 1990) (more…)

Quote of the Day:

I’m gonna make him an offer he can’t refuse.

Don Corleone – aka The Godfather (more…)

Quote of the Day:

I cannot accept Mr Schaeuble insulting my country

Karolos Papoulias – Greek President (more…)

Quote of the Day:

Insanity: doing the same thing over and over again and expecting different results.

Albert Einstein – German Theoretical Physicist (more…)

Quote of the Day:

We can and want to help only if there is a quid pro quo on the Greek side

Philipp Roesler – Germany Economy Minister (more…)

Quote of the Day:

But if you only have love for your own race
Then you only leave space to discriminate
And to discriminate only generates hate
And when you hate then you’re bound to get irate
Madness is what you demonstrate
And that’s exactly how anger works and operates

Black Eyed Peas (more…)

Quote of the Day:

The law must be passed by midnight because come Monday morning, the banking and financial markets must have got the message that Greece can and wants to survive.

Evangelos Venizelos – Greek Finance Minister (more…)

Quote of the Day:

I don’t think we’ll come to any results tonight. The negotiations have made progress but we’re not there yet.

Wolfgang Schaeuble – German Finance Minister (more…)

Quote of the Day:

That Nicolas Sarkozy needs Madame Merkel says a lot about his situation.

Francois Hollande – Leader of French Socialist Party (Main Opposition To Sarkozy) (more…)