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
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The glasses maker’s Chief Executive Andrea Guerra may be leaving following a rumpus with owner Leonardo Del Vecchio. Power politics or strategy may be the cause – or not. The lack of clarity and the absence of a succession plan are an eyesore on Italy’s corporate landscape.
Raiffeisen and Erste’s subordinated credit default swaps have rocketed in the last 10 days, as fears over Russia and Hungary spiral. But their senior CDS hasn’t followed. Creditors think that, like BES senior bondholders, they won’t be bailed in.
Low-grade bonds had a bad July, and no one is quite sure why. But high-yield is vulnerable. There is too much hot money and funds have bank-style liquidity mismatches. Add in the hunt for yield amid enduring low rates, and it’s a recipe for further turmoil.
- South Africa’s bank bail-in better than Portugal’s
- Pure politics can't revive Italy's coma economy
- Portugal bank panic betrays more than bad judgment
- BES bail-in leaves CDS traders struck out
- BES clear-up still leaves Angolan question hanging
- GSK trapped in Big Pharma's strategic bind
- Blackstone needed a little help on its Spanish bet