Jason Sterling sat on his hedge fund's Stamford, Connecticut, trading floor on January 28, 2011, scouring for any news coming out of the World Economic Forum's annual meeting in Davos, Switzerland in the Wall Street Journal and Bloomberg sites. He understood the emergent sovereign debt crisis in Europe will be a main subject of discussion among bankers and the world leaders who had convened at the summit, and he was expecting to locate some new info that he could trade on before the close of trading for the week.
Sterling's fund traded chiefly in sovereign debt, and he needed to determine if European leaders would manage to come up with a feasible way to solve the catastrophe or whether the debt crisis would cause the default of several European nations. At the forefront of the crisis was Greece, which faced the prospect of needing restructure its outstanding debt or to default on, and also ballooning deficits, rising interest payments. Sterling understood that if a remedy was not found in the coming weeks, the sovereign debt markets might be thrown into turmoil.
The Euro Zone and the Sovereign Debt Crisis case study solution
PUBLICATION DATE: July 11, 2011 PRODUCT #: UV5652-HCB-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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