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Restructuring is Verboten in EURO
It’s not a market surprise that the Euro-finance meeting did not provide a definitive solution to Greece’s debt issue. However, consensus appears to be moving closer, albeit slowly, to the idea that some form of ‘voluntary’ restructuring of Greek debt will be needed. Europe will now consider ‘reprofiling’ of Greek maturities. A word that most of the market never heard of before Greece entered the sovereign debt fold, a word like austerity. Using the term ‘restructure’ is VERBOTEN. The Greeks are being corralled towards more spending cuts and asset sales.The ability of the EUR to trade higher this ... (full story)