Not much reaction. When ratings are that low, doesn’t much matter….
- Debt restructuring plan amounts to a selective default
- S&P views the EU’s debt restructuring proposal as a “distressed debt exchange”
- The debt exchange and rollover options are unfavorable to investors
- Recovery rate of 30-50% expected from bondholders
One wonders if the earlier slide was someone getting an early peek at the downgrade..
Last week I thought that when the downgrade to selective default came it would be a buying opportunity for the euro. Given the heavy focus on US debt, I’d just as soon let the opportunity pass. Too much noise in the markets amid the US debt “debate”.