Elizabeth Fournier
staff writer
"Sovereign debt problems are going to keep in-house counsel very busy for the next couple of years. Investors bought on ratings and yields and have no idea how to restructure when the shit hits the fan."
With ongoing turmoil in Europe linked to Greece's debt downgrades, and concern over the budget deficit of several other Eurozone countries, the resounding call among bankers' counsel polled for IFLR's annual industry survey was for more due diligence and disclosure to be carried out on sovereign issues.
One hundred percent of respondents agreed that governments shouldn't be allowed to depend on reputation and ratings alone when selling bonds. Initial and ongoing disclosure requirements need to be introduced, and implemented without exclusion. The Greek debt crisis has left many market participants angry that the government kept its budget deficits under wraps for so long, and it's changing the way that investors look...