The issue arises because Greece used so-called collective-action clauses to force a debt exchange on the vast bulk of its bondholders.
The argument springs from the fact that these bonds were issued as part of a debt exchange by the Argentine government last June.
After all, Greece and its private-sector creditors just spent months negotiating a debt exchange that more than halved the value of their Greek bonds.
Greece confirmed that it had achieved an 85.8% participation rate on its debt exchange, which would allow the government to activate collective action clauses (CACs) to force holdout bondholders to accept the deal (taking the participation rate north of 95.6%).
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Real estate brokerage Realogy sought to skirt defaults on some of its bonds by launching a debt exchange but CarlIcahn'Carl Icahn's venture-capital firm, High River , threw a wrench in its plans by slapping Realogy with a lawsuit and accusing it of delaying the inevitable.
In the negotiations over Greek debt, the Greek newspaper Ethnos reported that bondholders are willing to accept a coupon rate of below 4% on bonds they would receive under a debt-exchange program.
So, here is my "modest" solution to the debt crisis: Other nations should forgive large portions of our debt in exchange for all the "free" global defense we have given the world over the last 95 years.
Hungary looks shakier than Poland, since it has smaller foreign-exchange reserves, more debt, and a tighter exchange-rate peg.
Three states have set up funds to lower debt repayments in exchange for spending reforms.
Just take it over and exchange debt for equity, bonds for stock.
Emerging economies were growing fast, she said, but low interest rates in advanced economies were prompting them to build up debt and foreign exchange exposure that could cause trouble.
But the new approach that Speaker Boehner unveiled today, which would temporarily extend the debt ceiling in exchange for spending cuts, would force us to once again face the threat of default just six months from now.
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However, most global trade, Asia's external debt, foreign-exchange liquidity and financial assets are still denominated in dollars.
Although Borders asked those vendors to forgive unpaid bills in exchange for debt, several major publishers opposed the idea and it never came to fruition.
The only realistic solution, according to Roubini, would be an orderly exchange of old debt for new debt similar to those used in response to sovereign-debt crises in Uruguay, Pakistan, Ukraine and others.
Another was to use foreign currency: the bank could lend, or accept a bill of exchange, in one currency and collect its debt in another, building a hidden rate of interest into the exchange rate.
The government will also study using foreign exchange reserves to prepay debt.
Republicans and Democrats agreed to budget cuts and a promise to pursue more deficit reduction actions in exchange for raising the debt ceiling.
Has DB also sold on- and off-exchange CDSs on Greek debt and is it against the restructuring to protect itself from having to pay out on the CDS contracts?
Restructuring foreign debt offers another way to stabilise exchange rates, because demand for dollars to repay short-term foreign loans is a big reason for the relentless downward pressure on the currencies.
The improvement in ratings is underpinned by emerging-market governments' strong external balance-sheets (record levels of foreign-exchange reserves and falling external debt ratios).
That clears the way for Greece to issue its formal offer, which would see private creditors exchange Greek bonds for new debt at lower interest rates and longer maturities.
Axioma, a firm that provides risk models and portfolio-construction tools for stock investors, uses 10 factors for U.S. stocks, including exchange-rate sensitivity, debt load and momentum, or the tendency of a rallying stock to keep rallying.
Moreover, it is quite likely that a strategy of short-term spending bills will complicate GOP efforts to get budget process reform in a couple of months in exchange for an increase in the debt limit.
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If the Fed chooses to reduce the real burden of the debt via inflation, the purchasing power of money will fall along with the foreign exchange value of the dollar, and those who trusted in U.S. public debt will suffer.
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Wages and living standards are rising, the last foreign debt is about to be repaid, and most exchange controls have been abolished.
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The stated debt is deceiving because in real terms Japan only owes the equivalent of 100% of GDP--Japan has Y1, 000, 000 billion in foreign exchange reserves and owns part of its debt, it doesn't offset debt for reporting purposes.
With Republicans in control of the House, conservatives must develop a list of workable reforms to Obamacare that they can pursue in exchange for deals with the Democrats on debt ceiling hikes and the litany of thorny budget deals going forward.
FORBES: Obamacare Starts In 2013, As Should Plans To Reform It
Optimists hope that their expiry in 2012 will allow a grand bargain to be agreed before then: the lower tax rates could be kept in exchange for a plan to stabilise the federal debt as a share of GDP by closing loopholes and cutting spending.
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