In The News

Grexit Grumblings: Germany Open to Possible Greek Eurozone Exit

Nikolaus Blome, Giorgos Christides, Christian Reiermann and Gregor Peter Schmitz January 6, 2015
The eurozone has economies in flux. Lithuania celebrates entry while Greece ponders an exit. Greeks vote in parliamentary elections on January 25 and many resent austerity measures imposed by Germany and other neighbors, explains an article in Spiegel Online: “the North-South conflict's focus is the German-designed austerity and reform program that all crisis countries have had to adopt in...

Europe’s Cheap Borrowing Costs Lure Corporate Fundraising

Sally Bakewell and Cordell Eddings December 30, 2014
Borrowing costs in Europe have fallen against dollar rates, to near half in some cases, and Bloomberg anticipates US firms to issue more bonds in euros. “Apple Inc. (AAPL), Verizon Communications Inc. and Albemarle Corp. led 68 billion euros ($83 billion) of bond issuance by American borrowers this year, the busiest since 2007 and 45 percent higher than 2013, according to data compiled by...

Missing the Prime Suspect in the Global Slowdown

George Melloan November 5, 2014
Inflation is a friend to those in long-term debt, especially those with low interest rates, reducing the value of money that is repaid over time. As the United States ends quantitative easing, Japan and the European Central Bank continue the policy tried since the economic crisis of 2008, purchasing debt to combat deflation, reduce interest rates and encourage spending. “Inflation expectations...

Argentina Default Flashes Warning to Emerging Markets

Will Hickey September 9, 2014
Argentina, among the world’s top 25 economies, is trying to seek relief with bondholders and avoid being locked out of international credit markets. A US judge has sided with a minority of bondholders led by a US billionaire, blocking payments to the 90 percent who agreed to restructuring. For now, despite the judge’s ruling that all or none of the bondholders be paid, Argentina explores debt...

Washington and the Argentine Default

R. Viswanathan August 29, 2014
Argentina wants to pay bondholders who agreed to a restructuring settlement and withhold full payment to a few holdouts, but a US judge ruled that all or none must be paid. “Argentina has now taken the matter to the International Court of Justice, complaining that the decision of the U.S. judiciary is arbitrary, abusive, and beyond its jurisdiction besides ignoring the sovereign immunity of...

Italy and Japan: Troubled Twins of Globalization

Joji Sakurai August 26, 2014
Japan and Italy are major economies, ranked third and ninth in the world, respectively. Yet both have slipped in recent years, a result of insular policies that in turn encourage provincialism. The cultures offer beautiful and unusual elements that draw admiration from around the world. Ironically, challenges emerge as each are obsessed with preserving and perfecting traditions. “Japan and Italy...

Companies Fear Radical Turn in Argentina

Benedict Mander August 25, 2014
Argentina has defaulted on its bonds twice since 2001. The country had settled with most bondholders, but the terms of some loans required disputes settled in US courts. A US judge sided with the minority, ruling that Argentina could not avoid the holdouts. A defiant Argentina swiftly responded with a swap plan to continue paying most creditors, but not the holdouts. Foreign firms doing business...