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

Sisyphean syphilis

by marco - Mar 26
23 comments

Movies

by DoDo - Mar 7
22 comments

Two ruins

by DoDo - Mar 14
7 comments

Greek MP Lapavitsas on Grexit

by Upstate NY - Mar 15
294 comments

Recent Diaries

Sisyphean syphilis

by marco - Mar 26
23 comments

Greek MP Lapavitsas on Grexit

by Upstate NY - Mar 15
294 comments

Two ruins

by DoDo - Mar 14
7 comments

Hello

by alexc - Mar 12
6 comments

Movies

by DoDo - Mar 7
22 comments

The new Greek government program

by talos - Feb 23
171 comments

More Diaries...

Occasional Series