Comments on: ECB Greek loss dodge heralds end of bond buying http://blogs.reuters.com/breakingviews/2012/02/17/ecb-greek-loss-dodge-heralds-end-of-bond-buying/ Mon, 26 Sep 2016 03:26:00 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: Caroline199 http://blogs.reuters.com/breakingviews/2012/02/17/ecb-greek-loss-dodge-heralds-end-of-bond-buying/comment-page-1/#comment-8886 Fri, 17 Feb 2012 16:31:49 +0000 http://blogs.reuters.com/breakingviews/?p=9491#comment-8886 Othe than domestic banks, it seems pretty clear that no one in their right mind can think seriously about buying euro sovereign debt -especially in the struggling PIIGS. Despite statements from officials and the ECB that a Euro credit event will be avoided, it seems clear this will not be the case. In fact not only will we see a CDS credit event (caused by the PSI through stuffing the private bond holders by retroactively changing their terms eg inserting CACs that don’t currently exist) we will now see that the ECB rank ahead of other creditors, which is bad enough but made worse by the fact that it is often impossible to know how much exposure they have at a point in time. The consequences of the Greek PSI have been severely underestimated by officials and the markets – time will tell if I am wrong.

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