Herewith my letter. There is much more I could have added but letters have to be brief. Of the UK bank lending to business, over 80% is for construction with over 80% of that construction being in London and over [...]
News and views: Jobs and debt deals, some short term market encouragement
The US employment figures showed a 227,000 approximate increase for February 2012 with manufacturing and business services reporting expanding orders. Over 90% of investors have accepted the Greek restructuring deal, the largest restructuring in history at over 205bn euros, with a high level of private sector involvement. Investors accepted new bonds at a loss of about 75% on the original with longer maturity dates. A credit event has been declared by the ISDA (International Swaps and Derivatives Association) after a delay with CDS contracts now being triggered for billions of dollars. The financial market reaction has been benign so far. I wonder who all the counter parties are and will this effect their core one tier capital ratios? It’s a good test for the CDS market if nothing else.
My portfolio is holding firm so far with a 3.6% gain YTD with dividends being taken out.