Neil Unmack is a Reuters Breakingviews columnist based in London. He covers credit markets, hedge funds, and Italy. Previously he was a corporate finance reporter at Bloomberg News in London. He started his career as a financial journalist in 2001 at Euromoney Institutional Investor, where he covered structured finance for EuroWeek magazine. He was educated at Eton College and Oxford University, graduating with a first class degree in modern languages. Follow Neil on Twitter @unmack1
- Tel: +44 (0) 20 7542 3878
- E-mail: email@example.com
Shares in Italy’s rickety Monte dei Paschi soared on claims its main shareholder, a charitable trust, had cut its stake. But it hasn’t. With the shareholder needing to sell to support a rights issue and save MPS, the lender is stuck in limbo. This is no way to recapitalise a bank.
Matteo Renzi has been forced to amend his electoral reform. The result could mean that Italy will remain ungovernable. The new prime minister’s hand is weaker, even though the risk of early elections has subsided. And serious economic reforms will be harder.
The country’s bonds keep sinking in spite of an upcoming IMF package. Creditors are facing either a soft debt rescheduling or more radical haircuts. The risks of austerity, devaluation and continued political uncertainty all point to the latter. Market prices still look rosy.
- CoCo pricing looks a little loco
- Man starts to crawl out of the wilderness
- Austria plays catchup with new era of bail-in
- Italy’s Renzi has big dreams and small mandate
- Italy needs fewer bad banks – not a big new one
- Italy would have much to gain from Renzi's success
- Securitisation muzzling does more harm than good