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Default and Lost Opportunities: A Message from Argentina for Euro-Zone Countries

Persistent euro-zone turmoil has kept the world economy on edge. Doubts about the ability of many countries in the single-currency region to service their sovereign debt are rising along with the interest rates the affected nations must pay to roll over maturing obligations.

Link al Paper

En esta ocasión es el turno del Global FX Monthly Analyst de GS, fechado Mayo 2012.

Desde el mundo CFA, un interesante artículo sobre Mercados de Frontera y actualidad. Todos sabemos que eso significa Argentina.

“Frontier market” is an economic term first used in 1992 by the International Finance Corporation to describe a subset of very small and illiquid emerging stock markets. Twenty years later there is no strict definition of frontier markets, though, by default, they are commonly viewed as those markets which are neither developed nor emerging. Highlighting both their opportunity and their challenge, frontier markets represent one-fifth of the world’s population, yet less than 10% of global GDP, and only about 2% of global market capitalization.

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Transmission of distress in a bank credit

The European sovereign debt crisis has impaired many European banks. The distress on the European banks may transmit worldwide, and result in a large-scale knock-on default of financial institutions. This study presents a computer simulation model to analyze the risk of insolvency of banks and defaults in a bank credit network. Simulation experiments reproduce the knock-on default, and quantify the impact which is imposed on the number of bank defaults by heterogeneity of the bank credit network, the equity capital ratio of banks, and the capital surcharge on big banks.

Link al Paper

En esta ocasión es el turno del Global Data Watch de J.P. Morgan, fechado el 27 de Abril.

(Fuente: Four questions, four thoughts, B of America M Lynch, Abril 2012)