Fed Comments Fuel Stocks

Wall Street Journal
Fed Comments Fuel Stocks

Bernanke Says Low Rates Didn't Fuel Bubble

Wall Street Journal
Bernanke Says Low Rates Didn't Fuel Bubble

Bond Trading Revives Banks

Wall Street Journal
Bond Trading Revives Banks

Greece and the Eurozone

Wall Street Journal
March 8: Europe Bank Forecasts Economy to Shrink
March 9: Greek Debt Restructuring Triggers CDS Payouts
March 10: Greece Defaults, and Tries to Move On

Fed Bond Buying

'Sterilized' Bond Buying an Option in Fed Arsenal
Fed Statement Following March Meeting

Fed Takes a Break to Weigh Outlook

Wall Street Journal
Fed Takes a Break to Weigh Outlook

Greek Debt Swaps

Greek debt investors face huge losses if their bond holdings are required to be converted following a default. Payouts have not yet been triggered but plans for payout are on the horizon. The payout anxiety follows laws passed this week that would force write downs and conversions on the country's bond holdings in the effect of a default.

The author reports bondholder write downs of 53.5% for private sector investors. Additionally, bondholders would be required to swap their holdings with new bonds that have longer maturities and lower coupons. These write downs and conversions would provide payout aid for Greece but cause significant bondholder losses.

This is just one hurdle for the debt riddled country as it faces further discussions with its Eurozone counterparts. Eurozone leaders would like to create a plan that would alleviate further future defaults, provide aid to Greece for their payout requirements, and limit the losses to bondholders.

Wall Street Journal
Greek Debt Swaps Explained

ECB's LTRO Has Little Impact on Risky Assets

The European Central Bank (ECB) gave the Eurozone another huge boost this week. The central bank offered 529.5 billion euros ($712.8 billion) in three year loans to 800 of the region's banks.

The ECB's lending strategy, known as the LTRO or Long Term Refinancing Operation, provides term loans to government banks at low market rates. The LTRO lending program is designed to ease liquidity pressures on Eurozone banks by providing them with lower rate loan options.

The offering is the second of its kind by the central bank. The first offering, last December, helped to rally Spanish and Italian bonds. So far, the second offering has minimally impacted risky assets in Spain and Italy but the ECB is hoping the second offering will have broader effects on rate offerings in Eurozone government bond markets.

Wall Street Journal
Banks Use ECB Loans to Suit Own Needs
ECB's LTRO Has Little Impact on Risky Assets