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PIIGS Come To Market: Greece With €5 Billion In Ten Year Notes, Spain With €4.5 Billion Five Year Bond
Greece has finally come to market with a 10 year bond, catching the very end of the offering window, through a €5 billion bond issue, which according to Petros Christodoulou-spread rumors, is nearly 3 times oversubscribed. Underwriters Barclays, HSBC, NBG, Nomura and Piraeus Bank are alleged to have collected nearly €14.5 billion in bids. We wonder how much of that is merely basis trades being fillled on the cash side. "We are very happy with the bid because the re-entry into the market is always challenging. It went very well," Petros told Dow Jones Newswires. Greece has cut price guidance on the bond from 310 bps over mid-swaps to 300 bps, with books closing at 11am GMT. Pricing is expected later today. Assuming this bond offering closes successfully, Greece will have enough money to last it for at least 30 days, joining such other illustrious countries as the United States, in living bond auction to bond auction.
Following this development, Spain has immediately announced a €4.5 billion 2015 bond offering, with a 2.842% yield, and a tiny 1.48 Bid-To-Cover.
And as all this is happening, the hammer is about to fall on CDS Speculators: on Friday the European Commissions will hold a "technical" meeting with regulators, banks and investors active in the CDS market, reports Dow Jones. And according to French Finance Minister Christine Lagarde, "The sovereign CDS market is a narrow one, with few players. It's a market that needs better regulation." She should certainly know.
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While, in the meantime...
Greek demonstrators took over the Finance Ministry building in central Athens and blocked streets in the city center as union groups stepped up protests against government wage cuts and tax increases to curb the deficit.
http://www.bloomberg.com/apps/news?pid=20601087&sid=a5SyK6.wdqKM&pos=8
any bidding for less than CCC yields courtesy of .....bada bing....central banks somewhere, somehow
same bullshat as Iraqi bonds
let's be serious - same bullshat as US T bonds
The bid FOR EVERYTHING is being PRINTED
stalling deeper recession, but hastening armageddon
A couple billion Euros? That's like America asking to borrow a quarter for a vending machine. When they need some real money I'll be interested to see who steps up.
Hell, Harry Reid spends a couple of billion dollars as an afterthought for gold plated port-a-potties for Nevada rest stops.
I notice the big banner ads on this page for 2 billion in California bonds. Is this a joke? If not, the answer is, simply, no.
I clicked on the ad, it's no joke. If you're that deeply in debt, you should spend less, not borrow more. Or, just borrow as much as you can and then declare bankruptcy.
Good lord, is there no one in Athens with a set of balls?
The road forward is simple, elegant and potentially paved with gold.
Step One: Default.
Step Two: Re-launch the Drachma.
Step Three: Tell all creditors to f*ck themselves.
Step Four: Profit.
A new currency and a clean slate is infinitely preferable to three decades of austerity. DO it Greece.
Good lord, is there no one in Athens with a set of balls?
Unfortunately, the only people that have balls are bankers and governments, the sheeple will never realize this until its way too late. They are all eunuchs. And what about all these demonstrations? BFD. They've accomplished nothing but a few days off.
Domt know who you are since you are Anonymous.
I fully agree with you.
It's time the Greeks took a stand
The Battle of Thermopylae - the Spartans being represented by the rest of the world
Do it Greece. Show the world your middle finger!
Unfortunately all I see is eunuchs. The only "balls" out there belong to bankers and their lackeys (gov't officials.) Even if the greeks accidentally got a hard on and switched to the drachma..what would be the exchange rate? and what would they be paying for oil?
Game set match
This stunningly successful bond auction should make all Greeks privately giddy. What austerity plan? The message to everyone is that all the bond markets wants is a few responsible-sounding promises, a couple of street demonstrations, and a little international jawboning for every issue to find a purchaser, whoever it may be. The day of reckoning is far into the future and can be disregarded as an investment consideration.
I'll pass on the CA bonds also. (Math problems are getting harder; you trying to hint at something?)
Tyler, could you please let us know what percentage of the Greek bonds were bid by Ben Bernanke?
Many thanks.
All the attentions to Greece...
And what about USA mega debt?
Ok, this is about cds speculation...
The US has its own problems, and serious problems, but impending sovereign default is currently not yet one of them.
The simple reason is that the United States, unlike any Euro-zone nation:
1. Owes all its sovereign debts in USD; and
2. Can create an unlimited amount of USD at will by flipping the "on" switch on the Federal Reserve printing press (or computer).
Now I guess we have to decide which little piggy is which! This Little Piggy poem This little piggy went to market, This little piggy stayed at home, This little piggy had roast beef, This little piggy had none. And this little piggy went... "Wee wee wee" all the way home...
So, let's follow the motivation trail on this bond offering. Aren't the buyers simply the same geniuses who extended the loans in the first place? I liken this move to betting the river flip in a game of Texas Hold Em when you're holding nothing in your natural hand. Praying that the river turn saves your ass.
"We wonder how much of that is merely basis trades being fillled on the cash side."
What does this mean? How is a bankrupt country like Greece having bonds that are yeilding around 3% getting sold? Who is bidding for this? I need enlightenment!
I'll tell you where those bids come from. It came from a bunch of seniors who had no idea that their "Fixed Income Securities" contain some random banana bond from the place where Democracy was born and then died.
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