As Greece Sells 3 Month Debt At Record 4.1% Yield, CreditSights Explains The Negative Downstream Effects Of A Greek Restructuring

Tyler Durden's picture

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ZeroPower's picture

Wow.. parking some funds in Greece until summer will give you 4%, not bad. And 10yr sitting at over 14.6%. BUT - good news. 5yr CDS tighter today!

DB Cooper's picture

Someone tell me how to buy Greek debt as this will surely lead them to default and we can get on with this.

AUD's picture

Bond speculators speculating on being able to flip Greek 3m to the ECB?

milanitaly's picture

Italian Finance minister Tremonti said today that is time to discuss the european threaty. (time to print money?)

 

Dick Darlington's picture

Wouldn't expect anything less from Italy than suggest something as suicidal as that. Italy has unsustainable debt load and poor growth prospects and the politicians in Europe know that they have already lost the game. So why not proceed to the next "kick the can" -act in this perverse show and start printing money outright. History shows that will solve all the problems in the world, right...

Sudden Debt's picture

WHO IN THEIR RIGHT MINDS BUYS 3 MONTH PAPER FOR A COUNTRY THAT'S A TICKING TIMEBOMB?!

Even 4% a day would be risky!

 

reload's picture

Quite so.

And in related news: Spanish 10yr yieds look like they are going to have another go at breaking north. Are the ECB frantically buying that shite as well?

http://www.bloomberg.com/apps/quote?ticker=GSPG10YR:IND

 

Cant see me's picture

What exactly would happen if they just defaulted?

What would that mean to the average Joe?

Sudden Debt's picture

1. Big pension funds will go belly up. Old people would have to eat less chicken and more grass.

2. Countries who buy each others debt (while have mountains of it themselves... go figure...) would get into even more shit and also risk to go above 120% GDP

3. All funding would need to come from inside of Greece : Huge tax raises. Industry would get out of Greece.

4. All government workers would lose their jobs.

5. No more infrastructural investments: Go dirt roads.

...

There are about 1000 implications and none of them is good.

 

 

topcallingtroll's picture

when the tulip mania crashed everyone netted out their trades and apparently it wasn't that bad according to the history books.

Won't this all net out to maybe a couple of really big losers and most people not noticing much?

Sudden Debt's picture

let's interview some of those traders who witnessed the tulip mania...

the "stock market" back then consisted out of about 100 people and it took about 4 weeks to carry a message from holland to spain back then.

 

 

 

DeadFred's picture

All those dirt roads and potholes... Hmmm.  Who is the biggest autoparts supplier in Greece?

the not so mighty maximiza's picture

they are a old dried up, crusted up hairy gryro

topcallingtroll's picture

The ECU has lost their credibility with the sheeple now, not just the zero heads.

 

They quietly allowed all the big banks to hedge and reposition all the while maintaining publicly that a default was not in the cards.

If a business did this they would be guilty of securities fraud, but a government can make false pronouncements and quietly allow the connected to get prepared.

Now no one will believe them that spain is contained.  This is going to be might interesting.

taraxias's picture

How would they hedge? Who's stupid enough to be on the other side of that bet?

topcallingtroll's picture

I guess we are going to find out when all these cross trades get netted out eventually.  There are a number of indirect hedges that might suffice to mitigate some of the damage.

Sudden Debt's picture

The ECU is synonym for silver coin :)

I actually have many, and their value keeps going up on a daily basis.

I think you mean EURO.