2015-02-05

Etf.com, Although Ecb’s Qe Helps

While the nations bonds had the worst three-month returns of 34 sovereign securities tracked by Bloombergs World Bond Index, the http://www.forextra.org/broker/fxpro-financial-services-ltd selloff was much milder than in 2012, when Greeces membership in the euro area was at stake. That year, private investors forgave more than 100 billion euros ($115 billion) of debt, opening the way for a new rescue package as the countrys debt reached 171 percent of its 2011 GDP. Debt Swap Greek stocks and bonds rallied on Tuesday after Finance Minister Yanis Varoufakis outlined plans to swap some debt for new securities. external link The political rhetoric is more constructive than most feared, said Espen Furnes, who helps oversee $85 billion at Storebrand Asset Management in Oslo. While international investors owning Greek stocks would face losses should Greece leave the euro, these risks have somewhat abated, he said. Resolution of the debt issue is far from a done deal. http://www.bloomberg.com/news/articles/2015-02-03/tsipras-proves-bullish-surprise-as-bonds-to-etfs-reveal-no-panic

Tsipras Proves Bullish Surprise as Markets Reveal No Panic - Bloomberg Business

Usually these companies offer very few or even no collateral to back the debts. Once the companies run into financial difficulties, they simply default on their debts or go bankrupt. Investors stand to lose all their invested capital overnight. This is why seasoned investors regard junk bonds as the riskiest asset class after stocks. In the past, key players were institutional investors who could do best trading platform due diligence on the financial profiles and business models of the issuers. http://theetftrade.blogspot.com/2015/02/from-streetwise-researchred-flag.html?spref=tw

Trading ETFs: From Streetwise Research—Red Flag

While a weaker currency is very helpful xm deposit bonus initially, its only a temporary tonic. The critical element in getting Europe growing again is to get credit flowing again. That part is very problematic, however. Let me explain. A depreciating currency can only take Europe so far on the road to recovery. In an open and connected global economy, currencies adjust with the flow of trade. Countries with a current account surplusi.e., those that are able to export more than they importsee their currencies rise, and eventually the simulative effect is erased. For the ECBs actions to have lasting benefits, the financial system has to be able to translate them site internet into increased money supply and lower rates for businesses and consumers. http://www.etf.com/sections/blog/ecb%E2%80%99s-qe-helps-it%E2%80%99s-not-panacea?nopaging=1

Trading ETFs: Stockman and Greece

According to Bruegel's estimates, the combined amount owed to the Eurozone countries and the ECB is about $230 http://www.telegraph.co.uk/finance/newsbysector/epic/stan/11375079/Commodities-collapse-could-wipe-out-entire-years-profits-at-Standard-Chartered.html billion, meaning that plus 500 deposit bonus $115 billion could be sliced off that total. Finally, the $25 billion balance of the $175 billion haircut needed to repudiate Greece "bailout debt" would have to come from the approximate $70 billion owed to private banks and bond investors http://www.realclearpolitics.com/2015/01/29/obama039s_college_savings_plan_debacle_350242.html outside of Greece. In practice that would amount to no hair cut at all from the current blown-out market value of these obligations. Indeed, the hedge fund speculators and other punters which scooped up this paper during the illusionary Draghi recovery of the past year would be more than lucky to recover 67 cents on the dollar. http://theetftrade.blogspot.com/2015/02/stockman-and-greece.html?spref=tw