Interesting article noting that, while European banks are having trouble selling bonds in their homebase markets, these firms are having little trouble selling debt here in the US. The author (a smart cookie, I might add), wonders whether US investors are taking on risk without doing their homework first.
He notes that the current situation reminds him of a similar set-up occuring 3-4 years ago in reverse order. In 2005-2007, US financial firms were having some trouble placing all the mortgage backed securities and derivatives flowing from the housing market. Domestic firms found European banks to be eager buyers. Subsequently, the US housing market collapsed, shouldering many Euro banks with huge losses.
Deja vu?
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