Lunchtime Links 4-6
DB’s $1 billion financing for Riga (Wood, Risk Mag) From the folks that originally broke the Greece/Goldman derivatives issue way back in 2003: “A financing transaction arranged for Riga by Deutsche Bank shows how local authorities can lay their hands on spending money without reporting it as debt.”
Blackrock warns banks on distressed mortgages (Van Duyn, FT) Blackrock says banks need to write-off borrower debts before they’ll consider extending new credit via private-label mortgage investments…
Greek Bond Vigilantes out in force (Papadimas, Reuters) Greek bond spreads are back at January highs. See the next link for where this may be coming from…
Greece seeks new investors to sidestep IMF (Coghill/Dahinten, Reuters) An earlier story said Greece wants to find new buyers for its debt so that it can sidestep tough austerity measures the IMF is likely to impose. One wonders who would actually buy dollar-denominated Greek debt, especially considering it could be a ploy to avoid getting the country’s budget in order. Perhaps the same folks who bought similar Russian debt circa 1997. My colleague Edward Hadas says a Greek default may be the answer….
Financial Crisis Inquiry Commission wrestles with setbacks (Chan/Dash, NYT)
Fannie/Freddie touch off swaps scrap (Patterson, WSJ) Cool. Fannie and Freddie will use their heft in the interest-rate swaps market to force them through clearinghouses. Exchanges would open up more competition, but clearinghouses are a start.
Chart — 40 years of the Canadian dollar (Culp, Reuters)
Baseball season! (YouTube) Too bad my Cubs are terrible. (This is a 5 yr old reciting Herb Brooks’ Miracle Speech)
Product placement (imgur)