The market has been waiting for three critical pieces of info from the Euro group summit.

  1. The amount of capital banks will be required to raise. We know the 9% threshold has been agreed, so I assume that means the banks will have to raise EUR 108 bln, the number that has been floating around all week. The fact that soggy ham sandwiches will count as capital is secondary…
  2. We’ve been waiting for the total buying power of the EFSF. They claim it will be levered to EUR 1 trln, an amount we’ve been guided to expect. Is it a real number? Probably not, but it looks good in a headline.
  3. The last piece is the depth of the Greek haircut. We’ve been guided to believe it should fall in the 50-60% range. Looks like that one remains to be seen, subject to meeting between Merkozy and the banks later tonight.