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On Dec. 14, Abu Dhabi obliged, pledging $10 billion to help Dubai repay a maturing bond.
A precedent for this was set in May, after the first inconclusive election, when a payment of €4.2 billion ($5.3 billion) was made to Greece, most of which went to cover another maturing bond held by the ECB.Even if this tortuous routing of European bail-out money to the ECB helped avoid an immediate default, any new Greek government would face huge strains.
But with changes afoot in Vanguard's indexing, whipsawing stock and gold markets and a rapidly maturing bond market, we thought it was a good time to check in with the Brooklyn-based fund family expert for his current take on the Vanguard universe.
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According to the most optimistic assessments, banks would contribute about 30 billion euros in debt relief to Greece by agreeing to swap maturing bonds for new ones with longer maturities.
Rev Holdings has stated it does not have the money to redeem the maturing bonds, S.& P. said.
In practice, it makes no difference whether central banks try to sell their holdings or simply let the bonds mature (since maturing bonds have to be refinanced).
Italy must repay or refinance almost 200 billion euros, about $276 billion, worth of maturing bonds by April 2012.
Unless the government concerned is running a surplus by that stage (dream on), maturing bonds need to be refinanced.
In the latest debacle, the company blamed a computer programming glitch that led the system to calculate amortized values of some maturing bonds incorrectly.
The proceeds from the bond sale will allow Greece to repay 3.2 billion euros in maturing bonds held by the central bank.
Lisbon intends to sell as much as 20 billion euros, or about $26 billion, in bonds this year to finance its deficit and redemptions of maturing bonds.
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