Greece crisis contagion on the cards

Well it is official the political party leaders in Greece failed to reach on the agreement and the re-election is on the cards. The jeopardy conditions calls for the lenders withdrawing $898 million from greek banks. What will happen if Greek exits Euro ? Who will pay their debt in-case if they exit Euro and the future of Euro lot of dilemma needs to be addressed.

The ripple effect of the above is that the parties who oppose the austerity measures upon which Greece’s bailout is conditional, such as Syriza, will gain support in new elections. Continue reading “Greece crisis contagion on the cards”

Jack of all or a Master of one

The post is about entrepreneurship in India where I have tried to put the views.
From the last couple of  years  Baba Ramdev, Kishore Biyani, Vijay Mallya and Govt. Of India has been making the news and there is lot more things common between them.

Lets begin with Baba Ramdev who became a household name by selling the benefits of yoga to the masses. He claimed that even diseases like cancer could be cured through yoga. Those who have seen his yoga Continue reading “Jack of all or a Master of one”

Rogue Traders now JP Morgan

The world financial market where already under pressure from the Euro crisis, untill yesterday late night when the news broke out JPMorgan has trading loss of at least $2 bln, reputation hit . The CIO unit is where Bruno Iksil was making $200 billion-sized bets. Basically JPM has suffered massive losses at its CIO group most likely due to its IG/HY positions held by Iksil.

Below quotes from Mr Jamie Dimon

  • “…Errors, sloppiness, and bad judgement.”
  • “Bad strategy, badly executed and poorly monitored”
  • “It could get worse. This could go on for a little bit.”
  •  “Badly executed, badly monitored. I’m not going to repeat it 800 times” Continue reading “Rogue Traders now JP Morgan”

Credit derivatives Cat bonds & Cat Swaps

Today the whole financial world is eyeing Spain in fact everyone is Freaking Out Over Spain‘sBond Auction will happen today. The Spanish benchmark bond are into red territory with the yield spiking from an intraday low of 5.717% early to 5.89%, finally catching up with Spanish CDS which have been wider for a while, now that CDS is once again more liquid and credible than cash bonds.

So just thought of sharing few exotic bonds :-

Catastrophe bonds, also known as cat bonds, are a form of securitization used to transfer natural catastrophe risk to the capital market. Continue reading “Credit derivatives Cat bonds & Cat Swaps”

Back to Europe It’s a huge pile of debt :-

Here is some bizarre facts the amount of leverage done on the various European economies. The contagion is spreading, was watching an interview yesterday in the night of a  financial consultant from Europe, and he responded to the questions with the context of European economies :-

  • How much does Greece Owe ?
  • 367 billion $
  • Who they owe too ?
  • Mostly to the other European economies

Continue reading “Back to Europe It’s a huge pile of debt :-“