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12.12pm BST Spanish debt insurance costs fall Another positive signal for Spain: the cost of insuring its debt has dropped sharply today to the lowest point since July 2011.
Exempting the ECB could trigger debt insurance contracts, known as credit default swaps, some analysts say.
C.D.S.'s are a form of debt insurance and played a major role in the 2008 financial crisis.
By comparison, only 10 credit rating agencies cover more than 2m companies across all forms of rating (sovereign debt, insurance, etc), together exceeding $5bn in annual revenues.
NEW YORK TIMES Debt Insurance in Greece Must Pay Out, Ruling Says | The International Swaps and Derivatives Association ruled that Greece's debt restructuring would prompt payouts on credit-default swaps tied to the country's government bonds.
More worryingly, a tower of credit default swaps — a form of debt insurance typically sold by investment banks — has been built on the debts of those countries, and the cost of paying up in a default would be huge.
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Much of the newly raised capital is going to AIG Financial Products debt-insurance subsidiary, which the analyst said was "significantly under-capitalised".
Citi received the most help from Washington — capital injections, guarantees for its debt and insurance on its most distressed assets.
Think of 15th-century Italy and its banks; the 17th-century Low Countries; 18th-century British government debt and insurance; 19th- and 20th-century American capital.
Suggestions range from making states with excessive deficits and debt pay insurance contributions to a European fund, to the possible loss of fiscal sovereignty, E.U. voting rights and ultimately expulsion from the euro zone for repeat offenders.
Meanwhile, delinquencies caused by too much personal debt, including insurance premiums, rose to nearly 14percentt, up from 11percentt, while delinquencies ascribed to health care and illness rose to about 21percentt, from about 19percentt.
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