Squawk / 29 April 2016 at 13:36 GMT
Blogger / MoreLiver's Daily
Euro crisis remark:

DBRS, the last credit rating agency that still has Portugal’s government bonds rated as investment-grade, will have a chance to adjust its rating. The European Central Bank’s (ECB) rules dictate that it can only purchase bonds with an investment-grade rating. Should the DBRS change its rating, Portugal could be closed out of the ECB’s bond purchase programme.

Of course, if the ECB would stop buying Portuguese government bonds, it would increase the bond yields and lead to a new crisis.

Fortunately, Portugal could always apply for a bailout (no new money, but being under a Troika programme and regular review, Portugal would then be eligible for the ECB's purchases).

If this would happen, the initial reaction would be panic-selling of Portuguese banks&bonds, only for them to bounce back later when a deal is formed.
Juhani Huopainen Juhani Huopainen
A rating change seems unlikely, DBRS analyst's recent comments suggest so, as interpreted by ABN AMRO here: https://insights.abnamro.nl/en/2016/04/global-daily-portugal-in-the-clear/


The Saxo Bank Group entities each provide execution-only service and access to Tradingfloor.com permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Tradingfloor.com and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Tradingfloor.com is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Tradingfloor.com or as a result of the use of the Tradingfloor.com. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. When trading through Tradingfloor.com your contracting Saxo Bank Group entity will be the counterparty to any trading entered into by you. Tradingfloor.com does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of ourtrading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws. Please read our disclaimers:
- Notification on Non-Independent Invetment Research
- Full disclaimer

Check your inbox for a mail from us to fully activate your profile. No mail? Have us re-send your verification mail