Fitch's move is important because it’s the first downgrade of a Euro-zone sovereign into the territory where securities were not eligible for the European Central Bank (ECB)collateral until their temporary change of rules in response to the crisis; an arrangement in place until the end of 2010. Unless the ECB fiddles with its rules before the end of next year, Greek sovereign bonds will no longer be eligible for ECB collateral - if Moody's or S&P downgrade them.
Sunday, December 13, 2009
Subscribe to:
Posts (Atom)
Posts
