- Figures from Trax, a subsidiary of MarketAxess, show that the volume of these CoCo that have changed hands this month has surged to 162.7 million euros, or a daily average of 8.6 million euros.
That's already more than August, July, June and May combined, and on a daily average basis is more than seven times August's average of 1.13 million euros.
Measured by trade count, it's a similar picture. Some 296 trades have been conducted so far this month, according to the Trax figures, more than double every month's total since February.
(lightfuse,getaway)
Part of what stiffens resistance to a bailout is that Deutsche Bank has, since 2009, tapped markets for 13 billion euros in cash, while paying out 19 billion euros in bonuses, according to data compiled by Autonomous Research. http://nyti.ms/2deV8DU Christ.But given the political opposition in Germany to any form of help for banks in distress, especially before important elections next fall, the situation would have to deteriorate significantly to prompt state intervention.
I believe so. These are arguably government-sanctioned ponzi schemes. Issuing debt, then buying back stock, paying bonuses and dividends. It's not really hyperbole to say that it's a racket. That said, the government has been more than complicit. Central banks have encouraged the behavior.