Saturday, 20 September 2014
Last updated 1 day ago
Dec 22 2011 | 2:25am ET
It seems that, in quitting a creditors committee, Vega Asset Management was playing softball over the restructuring of Greece’s debt. Hardball could come in the form of a lawsuit.
The Madrid-based hedge fund this month told its fellow investors in Greek bonds that it might sue if Greece sought to write down its debt by more than 50%. The only fund to serve on the creditors steering committee, Vega’s stance could sink Greece’s proposed voluntary bond swap.
“Vega believes that, given the current position of the official sector, a voluntary exchange that implies a NPV loss of 50% or less is not now a likely outcome,” Vega executive Jesús Sáa Requejo wrote on Dec. 7. “Vega needs to start considering all available legal options to refuse and challenge any exchange that implies a NPV loss of more than 50%.”
Greece and its creditors have agreed to a nominal 50% write down. But Greece is pushing for new bonds with an additional decade of maturity at half the coupon sought by the creditors.
According to the Financial Times, Vega’s ire has been raised by the negotiating approach of Greece, the European Union and the International Monetary Fund. It has also expressed anger that the European Central Bank has refused to take any losses on its holdings or to allow Greek banks to accept write downs.
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.