We are huge fans of Hugh Hendry, the outspoken and brash CIO of UK based UK-based Eclectica Asset Management. In today's episode of European Squawk Box, Hendry discusses how Ireland's guarantee of all deposits, which are two times Ireland's GDP will destroy the Euro, if it is allowed to go ahead.
He goes on to make the point that the market is pricing McDonald's (MCD) as a lower default risk than Ireland or UK government debt, as witnessed by the huge spike that has occurred in the Ireland 5 year Senior CDS spread, an amazing development.
Hendry has been one of the most candid and accurate commentators on the severity of the risks that have gripped the markets during the last year.
This is yet another highly relevant interview and point of view to absorb, as it presents the view of global credit from the other side of the Atlantic. A must see interview!
