Financial Crisis

Lebanon Will Default on Foreign Debt Payment Amid Deepening Economic Crisis The Government of Lebanon announced it will default on $1.2 bn payment on Monday 9/3/20. The decision reflects the economic and political turmoil the country finds itself in. Hassan Diab – the newly appointed Prime Minister-

Thomas Cook’s Rescue Tests Reputation of Default Protection Bloomber’sstory emphasizes the peculiar situation of Thomas Cooks default swaps. There is a real possibility for the CDS holders to get unpaid, even though Thomas Cook is close to a default. This is due to a specific technicality, where

Investors turn to credit derivatives amid fears of liquidity freeze in next market crisis This article by Sunny Ho describes a new trend among money managers’ strategies to ensure liquidity. By purchasing and backing their trades with CDS the money managers ensure that there would be sufficient

Rallye Short Sellers to Collect $522 Million Payday on Credit Swaps In this article by Bloomberg Katie Linsell described the latest CDS triggering. The underwriters will pay collectively around half a billion. That represents coverage of around 87% of the bonds. The unsecured creditors (not covered by

Argentina CDS and bond spreads jump as investors seek reforms Argentine’s CDS have increased sizably in the last few days. The considerable change shows how drastic and fast the changes in the CDS can be, especially when sovereigns are concerned. Argentine also has a history of defaults.

Italy’s ‘perma-recession’ could trigger a €2 trillion financial crisis that threatens the eurozone itself In this Business Insider’s article Jim Edwards lays down a speculation on the future of Italy’s EUR 2 trillion strong debts. The fiscal position of the Italian government is problematic and its scope