Dixon: EU enters brave new world of bank bail-ins

January 4, 2016

Europe has wasted too much taxpayers’ money rescuing failing lenders. So it is right to try to get investors to help foot the bill in future. But the tough new regime carries political risks which could make the rumpus caused by recent bail-ins in Italy and Portugal look minor.

Piraeus debt swap makes most sense for Greek bulls

October 16, 2015

The Greek bank is offering senior creditors a debt-for-equity swap. Acceptance means bondholders get a bigger upside if Greece recovers, and it could help banks’ current capital raising. But those worried the state is not out of the woods should hang on to their bonds.

Tyco sets new example for conglomerate bondholders

September 19, 2011

Shareholders appreciate a good breakup story and Tyco is giving them more to love. The industrial manufacturing group dismantled itself into three parts in 2007. Now, one of them, Tyco International, is being carved into three more pieces.

ECB Greek loss dodge heralds end of bond buying

February 17, 2012

The ECB will avoid losses on Greek bonds through a legal manoeuvre. Such special treatment will not please the bondholders asked to take losses on their Greek debt. That’s bad for other countries whose debt the ECB owns. And it will make bond buying difficult in the future.

Time to let CIT go

September 30, 2009

CIT is again trying to stave off what should be the inevitable at this point: bankruptcy. The lender, best known for its loans to small and medium-sized businesses, has been in hot water for years.

Bondholders will have to pay for Ukraine’s reset

March 5, 2014

The country’s bonds keep sinking in spite of an upcoming IMF package. Creditors are facing either a soft debt rescheduling or more radical haircuts. The risks of austerity, devaluation and continued political uncertainty all point to the latter. Market prices still look rosy.