Standoff continues in European distressed, say fund managers

By Mike Peterson

Thursday, May 31, 2012

Gulf between sellers' and buyers' expectations stands at 20 to 25 percentage points

 

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Comment by: Anonymous. Posted 11 years ago [2012-06-01 13:01:22]

i'd be careful betting on funds to win this one. since 2008 global regulatory institutions have shown incredible leniency towards banks' effort to shove their losses under the rug and push 'em forward in blunt hope the world becomes a better place... it's been 4 years and effectively public finds continue being used to monetize banks' losses.

Comment by: Anonymous. Posted 11 years ago [2012-06-01 12:56:55]

interesting position. does that make European banks effectively negative equity institutions? and - at who's expense are they allowed to continue carrying the mark-to-market assets and now officially inflated prices? doesn't it make mockery of the entire banking regulation system?

Comment by: Anonymous. Posted 11 years ago [2012-06-01 03:39:31]

A twenty point gap is huge! My money is on the distressed funds to stand firm and the banks to bite the bullet. The "next lesson" in Europe will be that Spain wants to inject capital in its banks and just can't afford to do it. Investors and regulators will then fear that other countries provide no effective backstop to their home banks, either.

CLOs

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