Sat, May 30, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Preparing for the unthinkable: Dechert advises on risk planning in the event of a eurozone exit

Wednesday, March 21, 2012

Beverly Chandler, Opalesque London: A legal update from Dechertís Financial Services Group, The Eurozone Crisis: Risk Planning for Asset Managers, aims to advise asset managers in the case of one of more of the EU states leaving the eurozone.

The firm estimates that in an extreme situation, the crisis could result in one or more of the following 'euroí events:

  • a dramatic loss of confidence in the ability of the exiting state to maintain its financial creditability;
  • transfer of funds away from financial institutions in the exiting state by domestic as well as foreign depositors
  • fund transfers accelerate into a run on the banks;
  • imposition of exchange and capital controls by the exiting state to prevent an exodus of capital;
  • the exiting state leaves the eurozone (unilaterally or by some form of agreement) and redenominated its euros into a new domestic currency;
  • this is followed by significant inflation and devaluation of the redenominated currency against the euro;
  • affected banks and other institutions default by on their obligations, triggering creditorsí claims and leading in some to insolvency or nationalisation;
  • (conceivably) the imposition of border controls by the exiting state to prevent a temporary population shift out of the exiting state; and
  • considerable uncertainty as to the correct legal chara......................

    To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: New TMT hedge fund adopts the long-term approach[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Adam Parker founded Center Lake Capital LLC in New York in November 2014. Before that, he was portfolio manager at Point State Capital (the successor fund to Dr

  2. Investing - Hedge funds buy swathes of foreclosed subprimes, force up rents, float rent-bonds, Hedge funds buy Actavis, Valeant. ETFs join the party, The most loved biotechs of big hedge funds, Stocks to buy ... according to hedge funds, Atlantic City bond offering attracts hedge funds as buyers, Okumus Fund Management discloses huge new Ascent Capital Group stake[more]

    Hedge funds buy swathes of foreclosed subprimes, force up rents, float rent-bonds From Boingboing.com: When a giant hedge fund is bidding on all the foreclosed houses in a poor neighborhood, living humans don't stand a chance -- but that's OK, because rapacious investors make great landl

  3. Institutions - Institutional investors turn to real estate, planes, Assets at Bostonís five biggest family nonprofits rise to $3.5bn[more]

    Institutional investors turn to real estate, planes From Joins.com: The National Pension Service and domestic emerging market specialists who did not know where to invest in a low interest rate environment are turning to other investments like the blue-chip real estate market abroad.

  4. Regulatory - Hedge funds face tax as Iceland poised to end capital controls, Comment: Why alternatives need more transparency, not enforcement[more]

    Hedge funds face tax as Iceland poised to end capital controls From Bloomberg.com: Hedge funds and other investors who bought claims against Icelandís failed banks face a tax that targets the lendersí estates as the government prepares to unveil its plan for exiting capital controls in t

  5. Investing - Nelson Peltzís Trian Fund Management reduces position in Legg Mason, Biotech investors up big amid bubble talk, Hedge funds increase exposure in healthcare[more]

    Nelson Peltzís Trian Fund Management reduces position in Legg Mason From Octafinance.com: Trian Fund Management has filled a SC 13D/A form regarding Legg Mason, Inc. Per Nelson Peltzís Trian Fund Managementís filing, the filler reported decreased stake in the company by -11.05% to 11,03

 

banner