After Greek Default, Spain And Portugal Pose Major Risk

Markets have begun digesting Greece’s managed default, with the Hellenic Republic’s new bonds trading at distressed levels.

Battle over EU financial firewall threatens to derail Greek bailout

At a G20 summit in Mexico in two days the EU will plead for increased IMF contributions by non-euro countries to help shore up a eurozone "financial firewall" seen as vital to protecting Spain and Italy from Greek debt contagion.

Greece: Clinch bailout or face euro exit

(Reuters) - Greece will have to leave the euro zone if it fails to clinch a deal on a second, 130 billion euro bailout with its international lenders, a government spokesman said on Tuesday.

Euro crisis: a torrent of words, but no clarity

Europe can't stop talking. Take yesterday. The German Chancellor, Angela Merkel, was in Brussels. Greece, she said, must remain part of the eurozone and get "a chance to get back on its feet".

Of course, to state the ambition that Greece should stay in the eurozone is the easy part. The more important questions, however, are these: Does Germany believe a Greek default inevitable? And, is Germany preparing a plan to manage such a default in the weeks ahead?

Hope for new approach in euro crisis buoys markets

Hopes that European leaders will consider new ways to fight the debt crisis, including a contained Greek default, reassured investors on Monday, though analysts said more specifics will have to emerge before a rally gains traction.

Over the weekend, European officials said Germany and other rich EU countries are pushing for a new strategy to the debt crisis, which is threatening to take down the eurozone's larger economies.

Euro nears 8-mth low on doubts over EU crisis steps

The euro dropped sharply on Monday, moving toward an eight-month low hit last week, as riskier assets were hammered across the board with markets waiting for more details on fresh efforts from European officials to tackle the debt crisis there.

The euro started cautiously higher, bobbing up to $1.3585 amid reports that the E.U. leaders were considering beefing up the European Financial Stability Fund and new measures to ring-fence debt-ridden Greece, Portugal and Ireland.

Contagion biggest threat to insurers in Greek crisis

(Reuters) - Greece's debt crisis has stirred fears of a wider euro zone sovereign credit meltdown that would be damaging for insurers, although the sector should be able to easily withstand any losses on its Greek debt, analysts said.

Most European insurers' holdings of Greek government bonds are small relative to their overall portfolios, enabling them to absorb any losses in the event of a default or restructuring, according to ratings agencies and equity analysts.