Credit

Eurex Exchange has recently set several new records in its Euro-OAT Futures. In August 2012, open interest exceeded for the first time the 100,000 threshold with 104,869 contracts. Trading volume in July also set a new record, both in average daily volume with about 19,600 contracts and in total with 431,000 contracts. Total volume since launch is over 1.5 million contracts.

The evolution of public sector debt depends on a number of economic variables and how they interact. Within the Eurozone, German and French debt looks sustainable while Italy, Portugal and Ireland appear borderline.

The Court of Auditors has conducted a survey on the management of government debt by the AFT. The report, released at the beginning of the summer, lightens the honorable work done by the AFT in managing relatively well the government debt but regrets a relative dependence on the SVT (primary dealers)...

According to John Gilbert, CIO of the Berkshire Hathaway’s subsidiary General Re-New England AM, French 10-year bonds should yield between 4.5% and 5%, closer to Italian and Spanish bonds rather than German ones. However, This opinion is not shared by the majority of the fund managers interviewed ...

The emerging markets (EM) ‘grand narrative’ that you hear constantly churned out is at best misleading and at worst dangerous...