June 10, 2011
What is the difference between a rollover, reprofiling and restructuring? Or between a ratings default and a credit event?
The unseemly public discussion this week on the way forward in the eurozone debt crisis has seemed like a bad capital markets joke. Only for investors it is not funny.
“We are getting to the point where the whole game is too silly,” Willem Buiter, Citi’s chief economist, says of the different words used to mean essentially the same thing: a restructuring of Greece’s debt.
Nick Gartside, international chief investment officer at JPMorgan Asset Management, adds: “From a market perspective these public debates are not helpful. Markets like certainty. Having a battle waged in public doesn’t give confidence to markets.”
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