Daily Musings and Music of a Euromarket Professional

Uncomfortable as it may be, being aware of sitting on a time bomb shouldn't keep us from being able to laugh about it - and to listen to some music!

Daily musings of a euromarket professional


Thursday, 11 October 2012

Screen Crash Flash: Spanish bonds' ECB haircut now hinges once and for all on DBRS

DBRS Spain rating AL neg since 08 Aug 2012

From 14 June 2012:
http://www.aviewfrommyscreens.com/2012/06/14-jun-2012-in-broken-dream-edwin.html

The guys at Moody’s were behind their peers’ curve anyway (see 11 Jun post “Unfinished Sympathy”), but have now taken the lead by putting the Kingdom right away on junk outlook. ECB Haircut increase from 4 to 9 % in 10 YRS and probably worse from 1.5 to 6.5% in LTRO-laden 3 YRS paper (ECB link p.73) is thus now hinging on DBRS’ views (Eurosystem credit assessment framework ECAF link).

Haircut table

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