Tuesday, 23 September 2014
Last updated 6 hours ago
Dec 21 2011 | 2:15am ET
A hedge fund has imperiled Greece's bid to restructure its debt in an effort to avoid a default that could drag Europe deeper into a financial morass.
Madrid-based Vega Asset Management yesterday resigned from the private creditors steering committee, complaining about Greece's proposals on how to proceed with a voluntary bond swap, Reuters reports. The move throws into question whether an acceptable deal, which Greece has said was close, can be reached by a crucial March deadline.
Vega was the only fund represented on the steering committee.
Greece hopes to push through a voluntary swap the would cut its debt by €100 billion. Under the terms discussed, bondholders would accept a 50% discount on their holdings in return for cash and new bonds. It has also been agreed that bonds would be covered by British, and not Greek, law. But there is still disagreement on how much the new bonds will pay, what their maturity will be and what the conditions of any guarantees would be.
Greece wants 30-year bonds with a 4% coupon; the banks want 20-year bonds paying 8%.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitich, CIO of Petty Endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.