Jason Sterling sat on his hedge fund in Stamford, Connecticut, on the 28th floor January 2011 scouring the Wall Street Journal and Bloomberg websites for news from the World Economic Forum Annual Meeting in Davos, Switzerland. He knew that the looming debt crisis in Europe would have a primary topic of discussion among the companies and banks, which had convened on the top leading, and he hoped to find some new information that he is on the trade before the end .. . Read more »

Jason Sterling sat on his hedge fund in Stamford, Connecticut, on the 28th floor January 2011 scouring the Wall Street Journal and Bloomberg websites for news from the World Economic Forum Annual Meeting in Davos, Switzerland. He knew that the looming debt crisis in Europe would have a primary topic of discussion among the companies and banks, which had convened on the top leading, and he hoped to find some new information that he is on the trade before the close of trading for the week. Sterling’s index funds primarily in government bonds, and he needed to find out whether European leaders would be able to come to a viable solution to the crisis or whether the debt crisis would lead to default by several European nations. At the top of the Greece crisis was ballooning deficits, rising interest rates, and the prospect of facing default on or restructure its outstanding debt. Ireland, Italy, Portugal and Spain were the other countries in the euro zone, the growing fiscal problems and were at the center of the sovereign debt crisis investors. Sterling knew that if a solution is not found in the coming weeks, the government bond markets could be thrown into turmoil.
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from
Giorgos Allayannis,
Adam Risell
Source: Darden School of Business
28 pages.
Release Date: 11 July 2011. Prod #: UV5652-PDF-ENG
The euro-zone sovereign debt crisis and the HBR case solution

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