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Unformatted text preview: (CDS) in the sovereign debt
markets. In the case of Greece, the 50% writedown
is not being treated as a default, which means any
institution that purchased CDS as a hedge against
such an event are receiving nothing. Systemic
risk, contagion, is the threat and what the European leaders, as well as the United States and the
International Monetary Fund, are trying to avoid.
There is an apparent fear among regulators and
investors alike that somebody somewhere is going
to go under like Lehman or Bear Stearns did in
the last crisis. What will be the catalyst? Will it
be a writedown of the value of the debt of Portugal, Ireland, Italy, Greece, and Spain? It is just a Year-to-date value at market close on November 16, 2011.
Sources: Bloomberg, Colorado Business Economic Outlook Committee, and Yahoo! Finance. Page 57 continued on page 58
57 2012 Colorado Business Economic Outlook Financial Activities
continued from page 57 one of many uncertainties facing the markets and
inhibiting long-term planning until these risks are
Looking at market performance across the globe,
the United States has done remarkably well. As of
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This note was uploaded on 02/11/2013 for the course MGMT 231 taught by Professor Yu during the Spring '13 term at Bauder.
- Spring '13
- The Lottery