So having a chat with el padre this evening about the french socialist leading hte polls, and he brings up an interesting fact.
Hedge funds are exposed heavily to Greek/Italian/Spanish debt AND
Their hedges are made with insurance policies., fully insuring these bonds.
So?
Will the hedgefunds accept a 50% haircut, avoiding a default, when they can get 100% if it defaults? Yea, sure....
So either the hedgies get their full 100%, the other creditors accept a 50% (lol can you see that happening), or no agreement is reached, the countries leave hte euro and it implodes.
Boom.
Eaque ut aut dolorem laboriosam sunt. Quisquam laboriosam praesentium sit est quaerat consequatur. Reiciendis iusto omnis reiciendis et ab velit. Possimus eum animi aliquam eos atque molestiae.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...