Debt Management
Irish woes may spread to other PIIGS
European Union action on Ireland’s bank debts points to fears over contagion spreading across peripheral Europe
Make the right decision: Spain’s Ordóñez to Dublin
Governor of the Bank of Spain suggests Irish officials ask for help as fears grow that Dublin’s resistance to a bailout will trigger contagion
Roubini: Eurozone restructurings will leave bondholders facing losses
Government debt levels in peripheral Europe mean restructurings cannot be avoided, says economist Nouriel Roubini.
DMOs to Basel Committee: leave our bonds out of your buffers
New rules mean banks will have to load-up on government debt, but one apparent beneficiary - debt management offices - are against the idea
RBI: external debts in India rising
Reserve Bank of India Monthly Bulletin shows external debts increased over the second quarter of 2010
Investors demand premium for Portuguese debt
Auction results show rising cost of Portuguese debt, analysts say investors are sending message to government to tackle deficit
Ireland’s debt costs soar
Auction results show demand for Irish debt remains strong, but analysts fear higher financing costs are unsustainable
Honohan suggests Irish deficit forecasts unrealistic
Ahead of bond auction, Central Bank of Ireland governor says higher refinancing costs and less-favourable-than-forecast conditions could stymie deficit reduction; “welcome relief” on Anglo
Non-government bond market recovery slow: Australia’s Debelle
Reserve Bank of Australia assistant governor Guy Debelle says spreads on non-government bonds remain high
S&P boosts Argentine rating one notch
Credit ratings agency Standard and Poor’s lifts Argentina’s sovereign credit rating from B- to B; cites strong economic recovery and solid debt management strategy
Spanish debt office in negotiations on credit support annex thresholds
Government agency looks to alleviate funding costs for bank counterparties in swaps transactions
Standard & Poor’s downgrades Ireland
Standard & Poor’s downgrades Ireland’s sovereign credit rating on fears over fiscal burden imposed by banking sector rescue
BoJ on dollar’s “exorbitant privilege”
Bank of Japan research notes that with great privilege comes great responsibility
Portuguese debt office agrees to post collateral to its dealers
Agency becomes one of first developed-market sovereigns to succumb to dealer pressure as costs of one-way collateral postings grow
Greek debt crisis sparks widening of almost all global CDS spreads
Cost of protecting against a Greek default up 190% in three months to mid-June as CDS spreads widened for 93% of sovereign debt on back of sovereign debt crisis in Europe
IMF resumes financial aid to Ukraine
Fund approves new application for loans after funding was cut off in dispute over its burgeoning fiscal deficit
EU faces tough call on sovereign scenarios for stress tests
European Union officials split on whether to run sovereign debt scenarios on stress tests; plans afoot to extend number of banks tested
Caruana’s three policy challenges
Bank for International Settlements’ general manager outlines the key problems with which policymakers must grapple
BIS fearful over fiscal crunch
Bank for International Settlements warns advanced economies that rising debt levels risk hindering long-term performance
CentralBanking.com panel: ECB’s response to Greek crisis too slow
Mike Williams, Paul Mortimer-Lee, and Phil Davis say the ECB should have moved more swiftly to tackle the fiscal problems in Greece
Bank of Canada: foreign US Treasury holders depressed long term yields
A Bank of Canada study into long-term US Treasury yields finds foreign holders absorbed the excess supply of bonds and decreased yields pre-crisis
Shilling weakened after Kenya bought euros, say analysts
Analysts link recent weakness in Kenya’s shilling to euro purchases by the central bank
Maastricht criteria tough enough to contain crisis threat: Cyprus
Central Bank of Cyprus paper finds risk of default zero if debt-to-GDP and primary surplus ratios remain below limits set out in Maastricht Treaty; paper mentions Greece and Italy as states where there is a default risk n
ECB’s Bini Smaghi: Greece cannot default
ECB’s Lorenzo Bini Smaghi says an orderly default is simply not an option to solving Greece’s fiscal burden