Austro-Greek blow-up is eyesore for CDS market 13 Mar 2012 An Austrian bad bank will write down up to 1 billion euros of Greek exposure, partly because of losses on credit default swaps. The surprise loss is largely due to accounting. But it’s a blow for those hoping that an orderly payout would show credit derivatives in a good light.
Austria’s problem is more Ireland than Italy 16 Jan 2012 S&P’s downgrade of the country’s AAA rating does not reflect problems in the economy. The current account is in surplus and deficit and debt levels moderate. But Austria’s banks peddled unsound foreign currency mortgages at home and abroad. The country is paying the price.
Hungary’s choice: disaster or surrender 10 Jan 2012 Budapest needs financial aid from the IMF and EU after its populist policies scared away investors. A swift deal would calm fears of contagion to Austria and central Europe. But international lenders can only agree if the government repeals its most outrageous reforms.