Analistas Financieros: "The solution's roadmap is taking shape"
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Fannie Mae and Freddie Mac vs. Greece
From Citigroup analysts : “Ultimately, the decision taken by the Fed was in line or even went beyond what was expected. The reinvestment of MBS debt by more than $20bn per month was good news for the real estate market, which still shows no clear signs of recovery. The IMF itself has already included in its financial stability report the possibility of going ahead with haircuts in the agencies’ debt…
Now it’s the Slovaks!
A Banco Santander note on Thursday addressing the misled general belief that it is Finland’s government that poses the tallest barrier in the Greek bailout’s way: “Positive news from Greece. The government announced aggressive additional measures necessary to reduce the deficit and thus gain access to the next €8bn tranche of aid. In any case, the risk of implementation is very high so it is expected that December (coming quarterly…
Now it's the Slovaks!
A Banco Santander note on Thursday addressing the misled general belief that it is Finland’s government that poses the tallest barrier in the Greek bailout’s way: “Positive news from Greece. The government announced aggressive additional measures necessary to reduce the deficit and thus gain access to the next €8bn tranche of aid. In any case, the risk of implementation is very high so it is expected that December (coming quarterly…
A futile Fed twist
80% of EU banks’ 2011-maturity debt already issued
JP Morgan on Wednesday made a few hopeful remarks on EU banks’ financing needs by 2012 (not as dire as everyone believes) that our readers may want to savour. A couple of truths for a start, though: “Ideally, banks should use as little as possible repo windows such as the recent three months-dollar one because it would restore confidence, despite delivering in the short term a fix for dollar-funding problems…
80% of EU banks' 2011-maturity debt already issued
JP Morgan on Wednesday made a few hopeful remarks on EU banks’ financing needs by 2012 (not as dire as everyone believes) that our readers may want to savour. A couple of truths for a start, though: “Ideally, banks should use as little as possible repo windows such as the recent three months-dollar one because it would restore confidence, despite delivering in the short term a fix for dollar-funding problems…
IMF sharply reduces US growth forecasts
From Bankia, a Wednesday alert on global economic developments: the International Monetary Fund warns that the global economy is entering yet another new dangerous phase: “activity is weakening across the board, the agents’ confidence has plummeted, regional disparities persist and there are increasing risks of downturns in all different scenarios. “The IMF has revised its general forecasts pointing out a significant downturn: global growth would stand at 4% for both…
Barclays smells an ECB interest rate cut
Many in the euro zone would be happy seeing this Barclays forecast becoming true, not the least in its peripheral shores. “We have revised our ECB projection and look for the ECB to lower the main policy rate by 25bp at its meeting on 6 October, and to widen the interest rate ‘corridor’ back to +/-100bp, which would entail lowering the deposit facility rate by 50bp to 0.25%. In turn,…
The Fed’s twist in the words of JP Morgan
JP Morgan expects that US Federal Reserve will announce that it is to auction between $300bn and $400bn in Treasuries with one to three years to reach maturity, and that it will concentrate 70% of its purchases on seven to 12 year-maturity securities while the other 30% will be on longer maturities. The bank believes that the Fed will carry out these acquisitions within the next 6 months. “The benefit…