Japan's Kokusai Liquidates Remainder Of Euro Sovereign Exposure, Just As European Pri - News and Current Events | futures io social day trading
futures io futures trading


Japan's Kokusai Liquidates Remainder Of Euro Sovereign Exposure, Just As European Pri
Updated: Views / Replies:183 / 0
Created: by Quick Summary Attachments:0

Welcome to futures io.

(If you already have an account, login at the top of the page)

futures io is the largest futures trading community on the planet, with over 90,000 members. At futures io, our goal has always been and always will be to create a friendly, positive, forward-thinking community where members can openly share and discuss everything the world of trading has to offer. The community is one of the friendliest you will find on any subject, with members going out of their way to help others. Some of the primary differences between futures io and other trading sites revolve around the standards of our community. Those standards include a code of conduct for our members, as well as extremely high standards that govern which partners we do business with, and which products or services we recommend to our members.

At futures io, our focus is on quality education. No hype, gimmicks, or secret sauce. The truth is: trading is hard. To succeed, you need to surround yourself with the right support system, educational content, and trading mentors – all of which you can find on futures io, utilizing our social trading environment.

With futures io, you can find honest trading reviews on brokers, trading rooms, indicator packages, trading strategies, and much more. Our trading review process is highly moderated to ensure that only genuine users are allowed, so you don’t need to worry about fake reviews.

We are fundamentally different than most other trading sites:
  • We are here to help. Just let us know what you need.
  • We work extremely hard to keep things positive in our community.
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts.
  • We firmly believe in and encourage sharing. The holy grail is within you, we can help you find it.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

Reply
 
Thread Tools Search this Thread
 

Japan's Kokusai Liquidates Remainder Of Euro Sovereign Exposure, Just As European Pri

  #1 (permalink)
Quick Summary
Japan's Kokusai Liquidates Remainder Of Euro Sovereign Exposure, Just As European Pri

When we discussed the specifics of the ongoing European bank run, we cited from the NYT which noted the actions of a core Japanese mutual fund with European sovereign exposure, namely that "earlier this month, Kokusai Asset Management in Japan unloaded nearly $1 billion in Italian debt." The Nikkei has just reported that this was merely the beginning: "Kokusai Asset Management Co. has sold all Spanish and Belgian government bonds that were part of its flagship fund, Global Sovereign Open, The Nikkei learned Monday. As of Nov. 10, Spanish and Belgian bonds accounted for 1.8% and 3.1% of the fund, respectively. The share of the bonds in the fund's portfolio fell to zero as of Thursday." Just what prompted this drastic move and very loud slap in the face of the European confidence building exercise? "A Kokusai Asset Management official said the company sold off the bonds, amid widespread concerns about the outlook for Europe's sovereign debt crisis to avoid hurting the value of the fund, given volatile prices of the bonds. The mutual fund operator had already divested the fund of all its French government bonds in October and all Italian bonds in early November." It is safe to say that where one core asset managers has been (and no longer is), everyone else will shortly follow. For the simple reason that it is now if not cool to not have European exposure, it is certainly required by one's LPs to cut down on all European bonds. Kokusai is merely the canary: expect everyone else to go ahead and dump the €741 billion in non-domestically held Italian (and then all other European sovereigns) bonds. Good luck ECB buying these in the secondary market. And one market where the ECB can do nothing by charter, is the primary issuance one, where as the following update from Morgan Stanley shows, things are getting from from bad to worse.




Issuance between now and year-end



A near-term silver lining for many countries is that their 2011 bond issuance programmes are drawing to a close in many cases (see Exhibit 4). France, Netherlands and Portugal have all completed their bond issuance programmes. However, Germany, Italy and Spain still have a fair way to go. In 2012, of course, bond issuance will have to resume.

Please register on futures.io to view futures trading content such as post attachment(s), image(s), and screenshot(s).


In the meantime, there is still quite a lot of T- bill and bond supply coming up before year-end (Exhibit 5). The week of the 28 November will be a heavy upply week; with issuance from Belgium, Italy, France and Spain. If the pattern of worsening auctions persisted, it would be very bad news for euro area sovereigns, in our view.



Please register on futures.io to view futures trading content such as post attachment(s), image(s), and screenshot(s).


And if, IF, Europe somehow finds a buyer for all of this stuff even as all other prudent asset managers are mimicking the Tesoro and selling on their own...then we get 2012, where things go from bad to worse to truly surreal - sorry Jim O'Neill, but in this case your astonishment would be perfectly valid.



More on ZeroHedge...

Reply to share your thoughts on this current event.


Reply



futures io > > > > Japan's Kokusai Liquidates Remainder Of Euro Sovereign Exposure, Just As European Pri

Thread Tools Search this Thread
Search this Thread:

Advanced Search



Upcoming Webinars and Events (4:30PM ET unless noted)

Jigsaw Trading: TBA

Elite only

FuturesTrader71: TBA

Elite only

NinjaTrader: TBA

Jan 18

RandBots: TBA

Jan 23

GFF Brokers & CME Group: Futures & Bitcoin

Elite only

Adam Grimes: TBA

Elite only

Ran Aroussi: TBA

Elite only
     

Similar Threads
Thread Thread Starter Forum Replies Last Post
Eagerly Awaiting That Jefferies CUSIP-Level European Exposure Update Quick Summary News and Current Events 0 November 5th, 2011 11:30 AM
Jefferies Releases Yet Another Set Of Numbers On Its European Exposure That Differ Fr Quick Summary News and Current Events 0 November 4th, 2011 04:30 PM
Egan Jones Downgrades Jefferies On Concerns About Sovereign Exposure Amounting To 77% Quick Summary News and Current Events 0 November 3rd, 2011 01:50 AM
S&P Cuts Japan Sovereign Rating Outlook to Negative Quick Summary News and Current Events 0 April 27th, 2011 12:10 AM
European Sovereign Debt: Crisis That Isn't Going Away Quick Summary News and Current Events 0 January 8th, 2011 01:20 PM


All times are GMT -4. The time now is 12:33 AM.

Copyright © 2017 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432, info@futures.io
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts
Page generated 2017-12-16 in 0.07 seconds with 19 queries on phoenix via your IP 54.226.113.250