The Iceland-Dow Connection
Josh has been watching the Icelandic krona: This morning, the ISK reached a nadir of 350 ISK to the EUR, and I was placing phone calls to travel agencies trying to book the cheapest holiday of my life....
View ArticleIceland’s Best-Laid Plan Falls Apart
Here’s how fluid things are: last week, Iceland nationalized Glitnir, the country’s third-largest bank. Today, it unnationalized Glitnir, putting it into receivership instead: clearly the bank’s...
View ArticleGermans Suffer from Exposure in Iceland
Iceland has three banks. Between them they have $61 billion in liabilities, or about 12 times Iceland’s GDP — which clearly makes it impossible for the Icelandic government to bail them out. But who...
View ArticleAdventures in Icelandic Monetary Policy
What does it mean that Iceland has just raised interest rates by 600bp, after cutting them by 350bp a couple of weeks ago? I’m not talking about monetary policy here, I’m talking about what it means in...
View ArticleLandsbanki Debt Settles at 1 Cent on the Dollar
What happens to unsecured bondholders when a financial institution goes bust? A good place to start is to look at the settlement price in CDS auctions. Fannie and Freddie settled in the high 90s: yes,...
View ArticleIcelandic CDS Datapoints of the Day
The CDS auctions for Iceland’s failed banks are all over now, and the results are up at creditfixings.com. Bank Inside Market Midpoint Open interest Final price Landsbanki senior 3.375 €454 million to...
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