Bifurcated Euro Begins As AAA-Only 'Elite'-Bond Issuance Considered - News and Current Events | futures trading

Go Back

> Futures Trading, News, Charts and Platforms > Traders Hideout > News and Current Events

Bifurcated Euro Begins As AAA-Only 'Elite'-Bond Issuance Considered
Started:November 28th, 2011 (01:00 AM) by Quick Summary Views / Replies:152 / 0
Last Reply:November 28th, 2011 (01:00 AM) Attachments:0

Welcome to

Welcome, Guest!

This forum was established to help traders (especially futures traders) by openly sharing indicators, strategies, methods, trading journals and discussing the psychology of trading.

We are fundamentally different than most other trading forums:
  • We work extremely hard to keep things positive on our forums.
  • We do not tolerate rude behavior, trolling, or vendor advertising in posts.
  • We firmly believe in openness and encourage sharing. The holy grail is within you, it is not something tangible you can download.
  • 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, and we will never resell your private information.

-- Big Mike

Thread Tools Search this Thread

Bifurcated Euro Begins As AAA-Only 'Elite'-Bond Issuance Considered

Old November 28th, 2011, 01:00 AM   #1 (permalink)
Quick Summary
Bifurcated Euro Begins As AAA-Only 'Elite'-Bond Issuance Considered

As the hopes of an IMF bazooka fades, Market News is reporting that the ever-ready-to-print-a-story European newspaper Die Welt says Germany and the other 5 AAA-rated nations of Europe are discussing jointly issuing 'Elite' bonds. We assume the borrowings could be used to fund the less-well-rated nations and avoid a true Euro-bond joint-and-several issuance which Merkel and other have been so opposed to. For now, it is clear that the 'Have's and the 'Have-Not's are becoming increasingly divided and this - much like our earlier discussion of the recap section of the EFSF draft - seems to be further from a fiscally united Europe and any inevitable endgame. We wonder what will happen when Austria gets downgraded? It certainly seems that the much-ridiculed ratings agencies are now playing an even more important role and we can only assume that the recent disappintments in the better-rated sovereign auctions were 'transient' and 'temporary'.

It is increasingly clear that Europe is bifurcating in many ways - High-grade and everyone else - and it appears the preparation is beginning.

From Market News:

FRANKFURT (MNI) – The German government and five other Eurozone member states with a triple A credit rating are considering issuing bonds together, German daily Die Welt reported Monday, citing unnamed highly placed EU officials.

The paper said that the money raised by the bonds would finance the debts not only of the six AAA-rated countries — Germany, France, Finland, the Netherlands, Luxembourg and Austria — but also help provide financial assistance, under strict conditions, for Italy and Spain.

The goal of the new bonds would be to stabilize the situation of the AAA countries and “erect a credible firewall that calms the financial markets,” the paper said.

The German Finance Agency would play a major role in the sale of the bonds, which would carry an interest rate of 2% to 2.5%, the paper said.

Since the bonds would not be “Eurobonds” jointly issued by all 17 Eurozone member states, they are being called “Elite bonds” or “Triple A bonds” for working purposes, Die Welt reported.

One more thought...Is Germany learning from its Chinese trade partners and looking to take on the vendor-financing mercantilist position among its European partners - if so, this would hardly help the imbalances that are among the causes of the problems we now stand in.

More on ZeroHedge...

Reply to share your thoughts on this current event.


Reply > Futures Trading, News, Charts and Platforms > Traders Hideout > News and Current Events > Bifurcated Euro Begins As AAA-Only 'Elite'-Bond Issuance Considered

Thread Tools Search this Thread
Search this Thread:

Advanced Search

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

Corey Rosenbloom: Tips, Tactics, and Real Trades: Trading Intraday Trend Reversals

Elite only

An Afternoon with FIO trader bobwest

Elite only

NinjaTrader 8: Programming Profitable Trading Edges w/Scott Hodson

Elite only

Anthony Drager: Executing on Intermarket Correlations & Order Flow, Part 2

Elite only

Adam Grimes: Five critically important keys to professional trading

Elite only

Machine Learning Concepts w/FIO member NJAMC

Elite only

MarketDelta Cloud Platform: Announcing new mobile features

Dec 1

NinjaTrader 8: Features and Enhancements

Dec 6

Similar Threads
Thread Thread Starter Forum Replies Last Post
Euro Bond: Europe's Only Way Out For Now Quick Summary News and Current Events 0 November 27th, 2011 05:00 PM
France's AAA Rating Is A Fragile Linchpin In Euro Zone Crisis Plan kbit News and Current Events 0 October 6th, 2011 01:19 PM
Euro Bond Would Get Weakest Member Rating: S&P Quick Summary News and Current Events 0 September 3rd, 2011 08:20 AM
China Denies Review of Euro-Zone Bond Holdings Quick Summary News and Current Events 0 May 27th, 2010 04:30 AM
Bond issues stall as euro crisis bites Quick Summary News and Current Events 0 May 23rd, 2010 05:30 PM

All times are GMT -4. The time now is 11:04 AM.

Copyright © 2016 by 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 2016-10-21 in 0.06 seconds with 19 queries on phoenix via your IP