Monday, June 14, 2010

Greece Downgraded to Junk by Moody's

Greece’s credit rating was cut four steps to non-investment grade, or junk, by Moody’s Investors Service, which cited the country’s economic “risks.” The rating was lowered to Ba1 from A3, Moody’s said in a statement today from London. The outlook is stable, it said. Greece is already rated junk by Standard & Poor’s.

It was only a matter of time before this happened. Why do two ratings agencies have so much power? The better question is, will traders and lenders continue to listen? I won't. As far as I'm concerned, Greek debt has been junk since March.

If you want to get short Greece, check out the Claymore/Delta Global Shipping Index ETF (SEA), which allocates 18% of holdings to Greece.

Related ETFs/ETNs: EUFN:US iShares MSCI Europe Financial Sector Index Fund, URR:US Market Vectors Double Long Euro ETN, ULE:US ProShares Ultra Euro

Patrick M. Ambrus
Managing Partner
Analyze Capital LLC
Twitter: AnalyzeCapital

No comments:

Post a Comment

This Blog has been developed by Analyze Capital LLC, and as an independent organization we provide “AS IS” information without warranty. The ideas and opinions expressed by the contributers of this blog are personal and do not represent the actions or policies of Analyze Capital LLC. The contents of this blog do not intend to assert recommendations or to offer advice of any kind. We are not responsible the consequences, be they gains or losses, that may result from using any of the information from this blog.