News And Market Re-Cap – RanSquawk / ZH
Frontrunning: April 13 – ZH
The Lunch Wrap – alphaville / FT
EM New York headlines – beyondbrics / FT
Morning Take-Out – DealBook / NYT
Daily Press Summary – Open Europe
EURO CRISIS
Disquiet at the ECB – MacroScope
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| 10-y government bond yield |
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| 5-y government bond CDS price |
What happened when Poland’s Fixed Exchange Rate Experiment Failed: Lessons for a Euro Divorce – EconoMonitor
Ed Dolan: first lesson is that fixed exchange rates aren’t for everyone… second lesson is that there is more than one way to leave a fixed exchange rate… third lesson is that if a country chooses any kind of managed exchange rate regime, even as a transitional measure, credibility matters.
EURO CRISIS: SPAIN
Spain Banks Boost Borrowing From ECB by 50 Percent in March – BB
Spanish banks’ borrowings from the ECB jumped by almost 50 percent in March, reaching the most on record, as lenders tap emergency loans and channel some of it into sovereign debt purchases.
Spanish banks’ borrowings from the ECB jumped by almost 50 percent in March, reaching the most on record, as lenders tap emergency loans and channel some of it into sovereign debt purchases.
Very nice collection of 14 charts
Marc Chandler: EU economic team visiting Spain, parliament agreeing to give the central government ability to intervene in regions, social networks curbed.
In particular the regions are uneasy about the new law that allows the central government to intervene if the regions "misbehave" fiscally.
When a minister of finance and economics states that his country “does not need a rescue at this time” and the central bank governor cautions that banks will need more capital “if the economy worsens more than expected,” private bondholders are likely to take notice
CHINA
OTHER
Equity Focus: Newtonian Profits – PIMCO
Stock prices today are anchored on strong profits, hence investors’ intense focus on the sustainability of those profits. If they fall, stock prices are likely to follow.
[CVA] Pass the margin on the left hand side – alphaville / FT
(variation margin) has the effect of increasing the size of margin flows, as derivatives portfolios become bifurcated into cleared and uncleared buckets, impacting liquidity and increasing counterparty risk.
(variation margin) has the effect of increasing the size of margin flows, as derivatives portfolios become bifurcated into cleared and uncleared buckets, impacting liquidity and increasing counterparty risk.
OFF-TOPIC
Exponential Economist Meets Finite Physicist – Do the Math