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Greek Bond New Issue Plunges - Where's All The Demand Now?

Tyler Durden's picture


Talking heads were positively orgasmic at the fact that Greece managed to get a five-year bond deal off in the public markets... at a 4.75% coupon and was 8-times oversubscribed. That must be great news, right? So, kindly explain to us where all that exuberant "Greece is the best thing since sliced bread" demand is today as the bond price has collapsed 1.5 points and yields smashed higher by over 30bps...?



As a gentle reminder here is yesterday's news... (from The FT)

Greece has raised €3bn in a five-year bond deal after attracting in excess of €20bn in orders for its eagerly anticipated return to the bond market.  The yield on the deal was confirmed at 4.95 per cent – much lower than most analysts expected.

And here is The FT from January 25th 2010...

International alarm over Greece’s debt crisis abated on Monday when investors flocked to buy the government’s first bond issue of the year, an indication that it may run into less trouble than anticipated in meeting its short-term financing needs.  Investors placed about €20bn ($28bn, £17bn) in orders for the five-year, fixed-rate bond, four times more than the government had reckoned on.

It's different this time.

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Fri, 04/11/2014 - 09:51 | 4647156 Serfs Up
Serfs Up's picture

What are these ""investors"" they keep writing about?

Fri, 04/11/2014 - 10:03 | 4647207 Rainman
Rainman's picture

Sounds like CalPers .... doesn't everybody wants to own the junkiest of junk for under 6%...?

Fri, 04/11/2014 - 10:35 | 4647370 nuclearsquid
nuclearsquid's picture

This looks suspiciously like some great theft or wealth transfer just happened.  I wonder who the robber/robbees are.


Fri, 04/11/2014 - 11:27 | 4647609 Doubleguns
Doubleguns's picture

Not suspicious. Its the normal flow from taxpayers to bankers. You must have missed the memo from the bankers. 

Fri, 04/11/2014 - 10:07 | 4647237 Element
Element's picture

Don't be difficult ... whatdaya think? .. that suckers don't buy Ponzi schemes anymore? ... they're out there ... just needs more cowbell.

Fri, 04/11/2014 - 12:02 | 4647767 Iam_Silverman
Iam_Silverman's picture

"What are these ""investors"" they keep writing about?"

Belgians mostly.  They have an international slant for foreign bonds.  Every now and then they wade into U.S. Treasury issues too.  They have an insatiable appetite for risk.

Fri, 04/11/2014 - 12:06 | 4647780 Bunga Bunga
Bunga Bunga's picture

No-brainer, nothing can go wrong. Those "investors" wrote the ESM policy.

Fri, 04/11/2014 - 09:52 | 4647160 LawsofPhysics
LawsofPhysics's picture

Where have all the suckers gone...?


(being heard in the halls of all the banking buildings and ivy league eCONomic schools throughout the world)

Fri, 04/11/2014 - 10:03 | 4647209 insanelysane
insanelysane's picture

The suckers are trying to scrape together a few nickels to buy hamburger meat and fuel.

Fri, 04/11/2014 - 09:52 | 4647161 Millivanilli
Millivanilli's picture

Greek is in recovery, cough...

Fri, 04/11/2014 - 09:53 | 4647165 put_peter
put_peter's picture

What is few billion auction when bancstas are making trillion dollar scams. I think this is a 'marketing budget' issue.

Fri, 04/11/2014 - 09:53 | 4647170 JailBank
JailBank's picture

I normally just buy Charmin with aloe. That seems quite pricey and a little rougher than I want on my b-hole.

Fri, 04/11/2014 - 10:09 | 4647250 Incubus
Incubus's picture

why the helll dont we use bidets?


Fri, 04/11/2014 - 12:04 | 4647774 Iam_Silverman
Iam_Silverman's picture

"why the helll dont we use bidets?"

Two words - COLD WATER!

Fri, 04/11/2014 - 09:55 | 4647174 Mrmojorisin515
Mrmojorisin515's picture

central bank circle jerk

Fri, 04/11/2014 - 09:55 | 4647177 The Reich
The Reich's picture

ECB shaddow bidding

Fri, 04/11/2014 - 09:55 | 4647179 buzzsaw99
buzzsaw99's picture

<-- bond flippers?

<-- bond floppers

Fri, 04/11/2014 - 09:56 | 4647180 Kaiser Sousa
Kaiser Sousa's picture

calling CNBS.....


Fri, 04/11/2014 - 10:05 | 4647226 insanelysane
insanelysane's picture

They will just shout "BUY THE DIP".

Fri, 04/11/2014 - 10:00 | 4647194 Al Huxley
Al Huxley's picture

Somebody actually did the math and realized that collecting a 4.75% coupon for 3 years and then losing all the principal due to default isn't a winning investment.

Fri, 04/11/2014 - 10:03 | 4647211 NoDebt
NoDebt's picture

I thought it was going to be 2 years of interest payments then a "non-credit event" restructure at 20 cents on the Euro.  

Fri, 04/11/2014 - 10:04 | 4647215 fonzannoon
fonzannoon's picture

Al I am the laughing on the inside type but that one just made me blow some coffee across the room. I think it's the dry humor combined with your avatar staring at me that seals the delivery.

Fri, 04/11/2014 - 10:17 | 4647293 NoDebt
NoDebt's picture

He's definitely got the avatar that most closely matches his commenting style.

Fri, 04/11/2014 - 10:00 | 4647195 Four chan
Four chan's picture

i'd rather buy a gyro with tzatziki sauce.

Fri, 04/11/2014 - 10:04 | 4647214 Incubus
Incubus's picture

i read that as "gyno with titty sauce"

Fri, 04/11/2014 - 10:01 | 4647199 NoDebt
NoDebt's picture

C'mon, who doesn't expect to lose 1.5% on a bond within 24 hours of buying it?

Fri, 04/11/2014 - 10:03 | 4647210 The Most Intere...
The Most Interesting Frog in the World's picture

hey if a jgb 10 yr can trade today at .605, why not a greek 10 yr?  these bonds will NOT default.  Think about it.  Would you rather have your money in a) greek stock market, b) greek bank account or c) a greek 10 yr?  the EU/Greek puppet government will take from a) and b) to pay c), and offer no apology...  btw, ditto everywhere else in the world and they will do it with a gun to peoples heads if they need to...

Fri, 04/11/2014 - 10:17 | 4647294 Al Huxley
Al Huxley's picture

Yes, no history of debt restructuring in Greece, they've always kept the bondholders whole (no need to check that 'fact', I'm pretty sure it's true).  And here I was considering option d) - don't invest ANY money ANYWHERE in Greece.

Fri, 04/11/2014 - 10:43 | 4647402 The Most Intere...
The Most Interesting Frog in the World's picture

NWO my friend... nothing in Europe will default...  It doesn't matter where you put your money...as long as EU/US are backing it you will get your money back...  

Fri, 04/11/2014 - 10:52 | 4647437 NoDebt
NoDebt's picture

I assume you missed the last 2 years due to a bad acid trip or something.  They DID default (though it was termed a "non-credit-event" so it didn't trigger credit default swaps), with PRIVATE holders of bonds taking an 80% hit.  Did the ECB take a hit on it's holdings?  No, of course not.  Just the PRIVATE holders.

The NWO takes care of it's own, friend.  Not you.  You are just food to them.

Fri, 04/11/2014 - 11:19 | 4647568 youngman
youngman's picture

That is what he is saying..they will never default..they just change the rules of what a default is...you might not get your money back..but they will call it an investment in Greece...so you feel better...but as for your principal..it will be gone...

Fri, 04/11/2014 - 11:40 | 4647663 The Most Intere...
The Most Interesting Frog in the World's picture

It will be different this time....

Fri, 04/11/2014 - 11:50 | 4647714 The Most Intere...
The Most Interesting Frog in the World's picture

Bank depositers and business owners will be turned upside down and shaken multiple times until pockets are empty prior to next default...

Fri, 04/11/2014 - 14:11 | 4648252 Telemakhos
Telemakhos's picture

They sort-of-defaulted-depending-on-your-definition on the Greek law bonds.  The new bonds are UK-law.  The EU will either have to back Greece or kick it to the curb this time, because there's no room for tonsorial squirming around the next default under UK law.

Fri, 04/11/2014 - 10:06 | 4647232 rayban
rayban's picture

The Greek bond issue was a marketing tool to illude people about the success of the Troika ahead of European parlamentary elections, a sort of "Mission accomplished" moment for bureaucrats in Brussels. The problem is that European voters know very well that this is not the case and are likely to severely punish ruling parties at the polls. Spreads are at ridicolous levels and will widen again approaching May 25th.

Fri, 04/11/2014 - 10:12 | 4647265 no more banksters
no more banksters's picture

It seems that the Greek government currently follows a similar logic to blackmail citizens as we approaching euro-elections. After the Baltakos scandal, the global neoliberal dictatorship rushed to support Samaras administration through the announcement that Greece is returning to markets and the Angela Merkel's visit to Athens on Friday, as a reward to government officials who adopt every part of the IMF neoliberal agenda. It's an attempt to reverse the negative climate against government.


Fri, 04/11/2014 - 13:36 | 4648088 MS7
MS7's picture

Since their plan to regain popular support isn't working. they are getting desperate. I hate to think what their Plan B is. Vote for us or the terrorists will win? (There was that car bomb yesterday, and I heard there was a call about another bomb in a hotel just now, although that may have just been a prank). One thing is for certain-- the neo-liberal criminals won't give up without a fight.

Fri, 04/11/2014 - 17:27 | 4649122 no more banksters
no more banksters's picture


Fri, 04/11/2014 - 10:15 | 4647279 Fix-ItSilly
Fix-ItSilly's picture

No big deal here.  There was a wink and a nod amongst the cronies - the ECB will buy at par.  If you are not a crony - what were you thinking?

Fri, 04/11/2014 - 10:22 | 4647311 The Merovingian
The Merovingian's picture

How do you say 'Cognitive Dissonance' in Greek?



Fri, 04/11/2014 - 11:29 | 4647620 Mr Giggles
Mr Giggles's picture

My my, your hair is looking very long!!

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