Welcome to the new version of European Tribune. It's just a new layout, so everything should work as before - please report bugs here.
Display:
If they held the bonds in a trading book which was marked to market the losses had been incurred already as the secondary market price of the bonds dropped. So, reducing the exposure by selling the bonds for cash does not incur an immediate loss and improves liquidity while giving up the possibility of recouping if the value of the bonds rises again.

If they held the bonds in an investment book on hold-to-maturity-accounting, they did indeed realise losses.

Economics is politics by other means

by Migeru (migeru at eurotrib dot com) on Wed Jun 15th, 2011 at 09:57:31 AM EST
[ Parent ]

Others have rated this comment as follows:

Display:

Top Diaries

The UK Left and Brexit

by car05 - Aug 27
4 comments

Brutish, Nasty, Prolonged

by john_evans - Aug 18
25 comments

Periphery, migration & decline

by Metatone - Aug 14
24 comments

1930s in social media

by DoDo - Aug 11
91 comments

It's "Whose Economy, Stupid?"

by Helen - Aug 3
36 comments

Recent Diaries

Occasional Series