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lypsey

Looking Bad In Hungry Now

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Just a matter of time!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

http://www.bloomberg.com/apps/news?pid=20601087&sid=aAfltXhthX.4&pos=3

Sovereign Credit-Default Swaps Surge on Hungarian Debt Crisis

By Kate Haywood

June 4 (Bloomberg) -- Credit-default swaps on sovereign bonds surged to a record on speculation Europe’s debt crisis is worsening after Hungary said it’s in a “very grave situation” because a previous government lied about the economy.

The cost of insuring against losses on Hungarian sovereign debt jumped 107.5 basis points to a record 416, according to CMA DataVision prices. Swaps on France, Austria, Belgium and Germany also rose, sending the Markit iTraxx SovX Western Europe Index of contracts on 15 governments 21 basis points higher to an-all time high of 174.4.

Hungary’s bonds fell after a spokesman for Prime Minister Viktor Orban said talk of a default is “not an exaggeration” because a previous administration “manipulated” figures. The country was bailed out with a 20 billion-euro ($24 billion) aid package from the European Union and International Monetary Fund in 2008.

“The comments out of Hungary have really spooked the market,” said Rajeev Shah, a credit strategist at BNP Paribas SA in London. “Investors are interpreting it as bad sign for trying to tackle Europe’s debt crisis.”

The euro dropped below $1.21 for the first time since April 2006, stocks tumbled and the cost of insuring against corporate default rose on speculation Hungary will weaken the EU’s willingness to rescue the region’s indebted nations.

Credit markets were also roiled after data showed U.S. employers hired fewer workers in May than forecast, signalling slowing economic growth.

‘Something Serious’

Swaps on Spanish government debt jumped 32.5 basis points to 288 after earlier reaching a record 295.5, according to CMA. Contracts on Portugal rose 41 basis points to 380, Ireland was up 34 basis points at 294, and Italian swaps climbed 30 basis points to an all-time high of 264, before retreating to 260. Contracts on Greece rose 72 basis points at 798.

The Markit iTraxx Crossover Index of swaps linked to 50 companies with mostly high-yield credit ratings jumped 30 basis point to 586, according to Markit Group Ltd.

“Are we on the brink of something more serious?” Deutsche Bank AG strategist Jim Reid wrote in a note to clients today. “We’ve little doubt that the authorities have no appetite for imminent peripheral defaults but we do see the situation getting worse before it gets better. This leaves markets vulnerable until there is more certainty surrounding the structure of the peripheral funding bail-out.”

Credit-default swaps pay the buyer face value in exchange for the underlying securities or the cash equivalent should a borrower fail to adhere to its debt agreements. A basis point on a contract protecting $10 million of debt from default for five years is equivalent to $1,000 a year.

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June 4 (Bloomberg) -- Credit-default swaps on sovereign bonds surged to a record on speculation Europe’s debt crisis is worsening after Hungary said it’s in a “very grave situation” because a previous government lied about the economy.

What's happening on June 22nd again? :unsure:

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did they say a previous government Fried about the economy?

greasy buggers.

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The front man of Jobbik just got sworn in to the Hungarian parliament wearing his Hungarian Guard uniform (their equivalent of the SS).

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As 'Big' Ron Atkinson once said at a World Cup match which the Hungarians were losing 0 - 3,

"The Hungarians dont travel well, I think they have just come here for the ride".

Sorry, no link, I just remember him saying that.

Will the ECB be buying Hungry bonds as well? Is the nation starved of capital? Perhaps they need help from Turkey.

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Just a matter of time!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Hungary said it’s in a “very grave situation” because a previous government lied about the economy.

what a shocker, its not my fault guv :lol::lol::lol:

a most unexpected excuse, take note Dave, i expect it will be as useful as a chocolate fireguard for your ratings too

Edited by Tamara De Lempicka

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As 'Big' Ron Atkinson once said at a World Cup match which the Hungarians were losing 0 - 3,

"The Hungarians dont travel well, I think they have just come here for the ride".

Sorry, no link, I just remember him saying that.

Will the ECB be buying Hungry bonds as well? Is the nation starved of capital? Perhaps they need help from Turkey.

The ECB have blown nearly all of their available funds on Greece already.

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China has just bought a SHED full of Euro!

JUST before the G20 meeting...........My if you were a Euro head of state your be VERY keen chat!

China has a Eco-9mm to their heads............i wonder what the "Deal" will be?

Mike

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They're stuffed.

Stuffed, hungary, drawn and quartered.

The Eastern block has gone quiet after their papered over crisis a few months ago. But it will be back to bite the ECB's bottom. A mass default of Eastern block countries is entirely possible this summer. The dominoes are leaning a little

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Sovereign Credit-Default Swaps Surge on Hungarian Debt Crisis

By Kate Haywood

June 4 (Bloomberg) -- Credit-default swaps on sovereign bonds surged to a record on speculation Europe’s debt crisis is worsening after Hungary said it’s in a “very grave situation” because a previous government lied about the economy.

The cost of insuring against losses on Hungarian sovereign debt jumped 107.5 basis points to a record 416, according to CMA DataVision prices.

416 record? IIRC, it reached some 900 after Lehman went late in 2008.

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The Forint's down 3% against the Pound today. That's not exactly collapsing is it? I mean the Pound's down 2% against the Yen. Shouldn't the Forint be dropping by more than this if they're really screwed?

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A mass default of Eastern block countries is entirely possible this summer.

This warning was first given on 19 March 2007

The Red Lights Are Flashing

The world scarcely noticed when Switzerland raised interest rates last week to 2.25pc, but Hungarians, Poles, Romanians, and Balts most certainly did. Their mortgage payments have just gone up again for the seventh time.

In one of the weirdest twists of hedge fund globalism, Swiss loans are now funding the housing booms of Eastern Europe. This is Europe's match for sub-prime folly in America, and just as dangerous.

The Euro will be toast as the EU begins to collapse as the big boys leave their sinking ship. ;)

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  • 152 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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