03-06-2017, 09:40 AM
Target2 imbalances in the eurozone continue to mount. The ECB itself now has the third largest negative balance following Italy and Spain.Target2 is a measure of capital flight. Those needing a further explanation of Target2 may wish to consider Reader From Europe Asks “Can You Please Explain Target2?””
Target2 Imbalances Grow: ECB Overtakes Greece as Third Largest Debtor | MishTalk
From next year, European countries will resemble emerging economies in a new way: sovereign bonds they issue will include collective action clauses (CACs). These allow a supermajority of bondholders to agree to changes in bond payment terms, which then apply to all bondholders. CACs became popular following Argentina’s default in December 2001 and even more so after the financial crisis of 2008. German Chancellor Angela Merkel and French President Nicolas Sarkozy, meeting in the French seaside resort of Deauville amid the escalating eurozone debt crisis in 2010, agreed to make them de rigeuer for sovereign bonds European countries issue under U.K. law from 2013.
Collective Action Clauses No Panacea for Sovereign Debt Restructurings | PIMCO