Category Archives: Credit Crisis

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European Sovereign Debt and the Clogging of the Banking System

Jens Weidmann, president of Deutsche Bundesbank, recently wrote a terrific piece in the Financial Times, making the point that the Faustian bargain between European sovereigns, their national banks, the ECB and EU policymakers to encourage European banks to gorge on sovereign debt may be politically attractive in the short run while being fundamentally a horrible … Continue Reading

The European Bank Loan Trade Is Not Yet Done

Here at Dechert, we have seen a slow but steady work stream over the past several years in assisting institutions in either buying or selling of pools of financial assets. Just recently, we advised Wells Fargo Bank in connection with its acquisition of a $4.5 billion performing pool of UK loans and the simultaneous financing … Continue Reading

New York Premiere of A Price Worth Paying?

Don’t miss your opportunity to catch the New York premiere of the new film,  A Price Worth Paying?, hosted by AIG, AON, Nasdaq OMX and Dechert LLP, happening Tuesday, July 23, at the NASDAQ MarketSite at 5:00pm.  Duncan Wiggetts, a Dechert partner, wrote this drama exploring how important it is for boards of directors to … Continue Reading

The Consequences of a Failed Banking Union

I told the Blog team that I had sworn off writing about Europe for a while; but really. The FT opinionized last week that the EU ministerial decision to agree on a standard “bail-in” to fix broken European banks was a good thing. The editorial ended with a ringing endorsement “something is, however, better than … Continue Reading

Cyprus: Yesterday’s News

As we predicted a few weeks ago (discussed here), Cyprus has rapidly fallen off the screen. Back to business as usual, based upon an iron-willed refusal to see the spreading cracks in the edifice of the common market financial system and willful blindness to the implication of such events.… Continue Reading

The Phony War

It’s been a while since we’ve visited Europe in this column, but events, or non-events, cry out for a fly-by. I am reminded of those months of September 1939 to April 1940 when the conflagration that was to be WWII was looming over the western world, yet, on the western front, no shots were fired. … Continue Reading

As Covered Bond Markets Retreat

Any number of banks in the United States have been courting, in a desultory sort of way, the covered bond. The Street has been scratching its head for many years trying to determine whether a U.S. covered bond could be done and, if so, whether it would be good. Congressman Garrett, who certainly can’t be … Continue Reading

It’s the Math, Stupid

Back to Europe and the Euro. To misquote President Clinton, it’s the math, stupid. OK, that’s a bit of an exaggeration, as there are political prescriptions that could change the outcome of this tale of woe. As I write this, everyone continues to celebrate the result of the most recent Summit and the alleged breakthrough for the … Continue Reading

The Eurozone: Opportunities During the Impending Troubles

Following up on last week’s cheerful exegesis into the data which is the dropping of the impending European banking and sovereign meltdown, I recommend Dechert’s Euro Crisis Website. It contains a series of Dechert OnPoints and White Papers providing in-depth analysis of the impact of Grexit and the rest on asset managers and other financial … Continue Reading

ROME’S BURNING: WHAT AM I MISSING?

So after another bad news week in Europe, I’m a bit gloomy about the future of the capital markets. As we try to run a business and help our clients, I’ve got this narrative running through my head about Europe. I keep running this movie back and forth in my head hoping it will help me tease … Continue Reading

The European Bank De-Risking Continued: The Buy Side

For the last few weeks, I’ve been writing about investing in distressed bank assets, with a particular focus on the European markets. As you know, we think there are huge opportunities as the European banks disintermediate to meet capital thresholds, while the economy in Europe grinds slower and slower. Last week in this blog we … Continue Reading

MORE ON OPPORTUNITIES IN EU BANKLAND

Last week, I spoke in London at a conference, “Investing in Bank Assets” sponsored by the Association of Financial Markets in Europe (AFME). The Conference had a titillating, if a tad alarming, subtitle “The European Purge Begins”. The question is, of course, is it true?  The purge, I mean.   Is there a European purge afoot, and … Continue Reading

The Eurozone Sovereign Debt Crisis: Investment Risks and Opportunities

We at CrunchedCredit.com hope that our written words provide insight and amusement on topics our readers care about.  And although we enjoy putting pen to paper (so to speak), we are always looking for new ways to connect with our client base and readership. Recently, CrunchedCredit.com blogger Rick Jones joined his partners George Mazin and … Continue Reading

Learning to Love Disintermediation

We’ve been writing a lot recently about the likelihood that European banks and, to a lesser extent, U.S. banks would be strongly incented to sell assets to improve capital ratios. We had a client briefing in New York on the Eurobank crisis a few weeks ago. We brought together our North American and European regulatory … Continue Reading

THE NEW NORMAL / A THEORY OF GOOD NEWS: 2012

It’s that time of year when we’re forced to think about budgets and business plans. The pointy headed types from the accounting department want to know exactly what we’ll be doing the second week of next May and, as I’m sure every one of you have said (or thought) when confronted with such bureaucratic insanity: If I … Continue Reading

Always Look on the Bright Side of Life: How Dexia’s Failure Could be Good for Capital Formation

The other week, I was musing in this blog about the likelihood of more AIB and Bank of Ireland type auctions of U.S. Dollar denominated assets by European banks. In the Wall Street Journal, on Friday, September 23rd, the headline was “Banks in France Cut Dollar Loans”. The article focuses on two of France’s biggest … Continue Reading

Summer Winds

Returning from a Labor Day weekend spent cleaning up after Irene, here are some notes as I clean out the desk drawer of Summer 2011:  I spent the first week of August with my family on Martha’s Vineyard as the Dow Jones lost 1000 points, bond spreads blew out, securitized lending ground to a halt … Continue Reading

So You Really Want To Do A Public Deal?

As the CMBS market begins to get its feet underneath it, a number of folks have begun to pine for the public markets. Since 2009, every CMBS deal has been issued as a 144A (or otherwise privately placed). The public market is beginning to feel like a memory. While there seems to have been relatively … Continue Reading
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