Loan Sharks Rejoice – Greece 2-Year Notes at 20% !
Posted By Guest Author On April 20, 2011 @ 1:30 pm In Credit,Think Tank | Comments Disabled
Andrew Horowitz
The Disciplined Investor [1]
April 19, 2011
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Investors in Greece celebrated today. They were awfully happy that their governmental was able to go to the open market and float 2-year notes at a yield of 20%. What a deal!!!!!
OPA!
The news was simple from Briefing.com: Greece conducted a successful 3-month Bill auction today, selling a greater-than-expected 1.625 bln euro at a yield of 4.1%, only 25 bps above the prior sale despite fears of a restructuring. With that, Greece’s ASE is leading European markets, up 1.8%.
OPA!
The cost to insure the debt of Greece from default has risen to a record high. So, either their are some very happy loan-sharks out there or there is simply no fear that bondholders will have any downside risk as long as Germany is there to support Greece.
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Equity Market Returns
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Article printed from The Big Picture: http://www.ritholtz.com/blog
URL to article: http://www.ritholtz.com/blog/2011/04/loan-sharks-rejoice-%e2%80%93-greece-2-year-notes-at-20/
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[1] The Disciplined Investor: http://www.thedisciplinedinvestor.com/blog/2011/04/19/loan-sharks-rejoice-greece-2-year-notes-at-20/
[2] Image: http://www.thedisciplinedinvestor.com/blog/wp-content/uploads/2011/04/CDS-20110418.jpg
[3] Image: http://www.thedisciplinedinvestor.com/blog/wp-content/uploads/2011/04/Piigs-Returns-201104191.jpg
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