• Summit deal a step towards Eurozone stability, steps have targeted main cause of the crisis
  • Critical that ECB carry on bond purchases.
  • Greek PSI deal a “necessary “step, effectiveness of summit deal depends on details
  • Likely to see further market volatility
  • Boosting EFSF size critical, assigns AAA rating to amended EFSF program
  • Views 50% Greek bond haircut as a default event
  • Greece faces austerity and low growth challenges