“European market hangs in the balance as LNG champions take aim at Russian-Turkish energy alliance.” – by John Psaropoulos
Best Reads
The Sound of Margrethe Vestager (Bruegel)
“Will AI exacerbate the gap between big companies and small ones? Do ordinary Europeans gain anything from having European tech giants? Interview Margrethe Vestager, the Executive Vice President of the European Commission for a Europe Fit for the Digital Age” – Podcast by Nicholas Barrett and Guntram Wolff
Central Bank warns on Dublin’s €78bn company loans hub (The Irish Times)
“Ireland’s growing role as a host to esoteric vehicles for repackaged loans of highly indebted companies internationally could see it caught up in an international financial shock if corporate default rates spike.” – by Joe Brennan
Repo rate raised to zero per cent (Sveriges Riksbank – Swedish Central Bank)
“Inflation has been close to the Riksbank’s target of 2 per cent since the start of 2017, and the Riksbank assesses that conditions are good for inflation to remain close to the target going forward. Therefore, in line with the assessment in October, the Executive Board has decided to raise the repo rate from –0.25 […]
Trump impeached in historic rebuke (Politico)
“For only the third time ever, the House recommends a president’s removal from office.” – by Kyle Cheney and Andrew Desiderio
U.S. Concedes Defeat on Gas Pipeline It Sees as Russian Threat (Bloomberg)
“The U.S. conceded it won’t be able to stop completion of the controversial Nord Stream 2 natural gas pipeline from Russia to Germany, acknowledging the failure of a years-long effort to head of a perceived threat to European security.” – by Jennifer Jacobs, Nick Wadhams and Lars Paulsson
US leveraged loan default rate hits 9-month high (LCD News)
“Though the trailing default rate in leveraged loans has remained stubbornly below its 2.9% historical average, several indicators point to increasing pressure.” – by Rachelle Kakouris
CLO market: Corporate distress? Bring it on (Euromoney)
“Ask any market participant where they think that the next crisis is coming from and their answer will almost always be corporate credit. We have been watching the market very closely and have seen degradation in investment grade. BBB is the new A.” – by Louise Bowman
Boris Johnson Hails Election Triumph (Politico)
“Boris Johnson’s big gamble paid off in spectacular fashion. The Conservatives have won their first sizable majority in decades, having taken dozens of seats from Labour, including many that had been held by the party since they were created.” – by Eleni Courea
Thomas Cook CDS: When Does a Corporate Debt Reorganization Amount to a Bankruptcy Credit Event? (JD Supra)
Thomas Cook Group Plc’s (Thomas Cook) recent attempt at a restructuring and its ultimate downfall received numerous headlines. – by Kramer Levin LLP