At the end of the old Metals thread we were discussing this interview by Jim Sinclair (link below) in which he explains why a ruling coming soon by the ISDA (International Derivatives Oversight Board) could be significant.
Short version: Sinclair expects this oversight board (the ISDA) to decide that Greece only paying back 50% or less on its bonds is NOT a default event.
This means the derivative insurance products designed to protect those who own the bonds would be useless in protecting them, but would protect the biggest banks from exposure to losses from a Greek debt write down.
Sinclair says this will lead to a greater expansion of global QE later this year in line with his "QE to infinity" point of view.
This post was edited on 5/20 9:02 AM by grandpau
This post was edited on 5/23 7:52 PM by grandpau
This post was edited on 5/24 11:37 AM by grandpau
This post was edited on 5/25 4:28 PM by grandpau
This post was edited on 5/26 7:43 PM by grandpau
This post was edited on 5/27 8:04 PM by grandpau
Sinclair interview on ISDA ruling on Greek debt
Short version: Sinclair expects this oversight board (the ISDA) to decide that Greece only paying back 50% or less on its bonds is NOT a default event.
This means the derivative insurance products designed to protect those who own the bonds would be useless in protecting them, but would protect the biggest banks from exposure to losses from a Greek debt write down.
Sinclair says this will lead to a greater expansion of global QE later this year in line with his "QE to infinity" point of view.
This post was edited on 5/20 9:02 AM by grandpau
This post was edited on 5/23 7:52 PM by grandpau
This post was edited on 5/24 11:37 AM by grandpau
This post was edited on 5/25 4:28 PM by grandpau
This post was edited on 5/26 7:43 PM by grandpau
This post was edited on 5/27 8:04 PM by grandpau
Sinclair interview on ISDA ruling on Greek debt
