As part of a complex Greek debt rollover being proposed by French banks, a European Investment Bank or ESFS guarantee of the newly issued debt would be part of the package.
No I’m not a bond restructuring expert but it seems to me you have to treat all classes of holders of the same security equally, otherwise you will end up in a selective default situation…Seems to me we should hear from the ratings agencies before too long on this proposed structure. A thumbs down could send EUR/USD skidding again.
It was good to hear that the EU is working on a potential bridge loan for Greece in case the Greek deal is voted down. Without that safety net it could be lights out for the euro.
On the downside, now that word has leaked, it may give some Greek members of Parliament the courage to vote against the package, figuring (correctly) that they will get their arses bailed out one way or another…
