Subject:

JP Morgan Eye on the Market, May 10, 2011: Snakes and Ladders

From:
"Person, Brian H" brian.h.person@jpmorgan.com
To:
 
Date:
2011-05-11 07:09
Attachments:
05-10-11 - EOTM - Snakes and Ladders-pdf.zip

Eye on the Market, May 10, 2011

 

In a world awash with money and in which risky assets of all kinds are recovering, one category has been left out: sovereign debt issued by Greece, Portugal and Ireland.  While these three countries only make up 5% of European GDP, European bank claims on these countries, including sovereign debt, bank exposure and reported derivatives, is roughly half a trillion Euros.  Given European Tier 1 Bank Capital of roughly 1.3 trillion Euros, the resolution of the peripheral debt situation is a challenge for the region.   This week, a Peripheral Debt board game to understand the financial, economic and political machinations in Europe: Snakes and Ladders.

 

Michael Cembalest

Chief Investment Officer

 

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