The judgement on debt restructuring
The growing consensus yesterday was that European banks were moving towards a partial voluntary restructuring of Greek debt. There are many questions still to be answered, not least how US banks will be involved and how rating's agencies will view the arrangements with regards to default. This allowed for some partial relief during Monday's session, with EUR/USD putting on nearly two big figures from the lows near the 1.41 level seen during Asian hours. However, as we detail below, one can't help thinking that we've come full circle, with the rates, terms and political interference leading to the current deal looking very much like the actions that kicked things off four years ago in the US sub-prime market. |
