Sovereign Debt

Form and Substance Eupdate

07/04/11

After a month spent reeling from DSK whiplash, Eupdate finds the European landscape little-changed, much noise notwithstanding.

[more]

Vive l'extension et la prétention!

06/27/11

Who said that the US had a monopoly on extend and pretend?  The French are showing that they know that move and that they can do it with panache.  The French have graciously announced that their banks have agreed to reinvest about 50% (~.7*.67) of their holdings in Greek debt that is maturing soon in new, long term Greek debt. Quelle générosité!

[more]

Vallejo's Chapter 9 plan

02/03/11

The City of Vallejo has filed its Disclosure Statement and plan in its Chapter 9 bankruptcy case.  The plan proposes paying general unsecured creditors, mostly employees and retirees, about 5 cents on the dollar from a $6 million fund, an amount roughly equivalent to the legal fees paid in the case through December 2010.  Vallejo apparently did not finance capital projects with unsecured

[more]

Open Mouth, Insert Foot

01/28/11

Japan's debt got downgraded by S&P because it doesn't believe that the Japanese government is serious about taking measures to cut its deficit.  And here's what the Japanese Prime Minister Naota Kan had to say, “I just heard that news.  I am a little ignorant on those kind of matters.  Let me look into it more.” 

Brownie, you're doing a heckuva job.

[more]