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Here’s a nice find by guest author Eric Fry – and I have to give yet another hat tip to our European correspondent Dr. Evil, who predicted this a few months ago by saying the bailouts that would be needed by Spain and Italy would further weaken the French balance sheet – and ironically drive […]
While America was waking up to a Labor Day of BBQ and outdoor beer drinking, Italian and Spanish bonds were collapsing versus German bunds. I would have sipped beer all day without a clue, were it not for our intrepid Euro bond expert Dr. Evil, who was kind enough to drop this jaw-dropping chart in […]
Reading headline after headline panning the latest Europe sovereign debt salvation plan from Germany and France, you might be tempted to think that yields were breaking out to new highs. If so, you’d be wrong. For the time being, at least, the bond market appears to be relatively appeased. Since it’s likely that nobody really […]
Regular readers likely are casting a skeptical eye at the latest Greek bailout. When should we take this gift of respite to go short questionable European paper, and the euro itself, you ask? First let’s turn to one of our favorites, legendary hedge fund manager Felix Zulauf, who spoke some sense into Barron’s Alan Abelson: […]
We’ve been watching the sovereign debt of Spain and Italy quite closely this year – and today, we saw the biggest fireworks yet. Our friend and correspondent Dr. Evil had astutely tipped us off to the significance of the debt on the balance sheets of Spain and Italy. While the world focused on Greece, these […]
Our daily Italy Debt Watch continues! Yields are once again hot, up another 5bps at I type (11:30am Pacific time). Italy 10-year yields are blowing up! (Source: Bloomberg) The most popular story on Bloomberg today features hedge funds piling into bets on the European debt crisis getting worse: Hedge funds that trade bonds and loans […]
Yields on Italy 10-year bonds are rocking and rolling once again today, up 12 bps as I type, over a 20 bps in the last two days! Source: Bloomberg Regardless of the rhetoric out of Brussels, the final arbiter of the sovereigns’ likeliness to make good on their obligations is the bond market. And right […]
It’s not quite Halloween yet, but some important European charts are starting to look pretty horrifying! (Hat tip Dr. Evil for making significant contributions to this story.) Let’s start with Italy, our favorite impending disaster, sporting a 120% debt-to-GDP, with enough total weight to take down the entire system. Italy’s economy has never really been […]
Our good friend and European bond expert/correspondent Dr. Evil sent in a note this morning about the big moves in Spain’s and Italy’s 10-year paper – which we’ve previously highlighted as the real elephants in the room (see: European Sovereign Debt Spread Breakouts Near). Dr. Evil writes that Spain 10-year yields are up BIG – […]
The folks at The Institutional Risk Analyst sat down with “EU financial mess expert” David Kotok, CEO of Cumberland, to discuss the ECB’s (shoddy) options, the Fed’s lack of credibility, and the looming risk of deflation for the West. Kotok: The question of credibility is a continuing problem. It all comes back to solvency. We […]
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