Bailed-Out Cyprus Is Not Kenya - Sells 5Y Bonds At 4.85% Yield

Tyler Durden's picture


"Simple Jack" is back. Yesterday it was the 4x oversubscription for Kenyan debt at 7% yield; today we see bailed-out Cyprus (yes that Cyprus - in "emergency situation" and still with capital controls) managed to sell EUR 750 million of 5 year maturity debt at a 4.85% yield. As Reuters reports, this is the fastest comeback to the public markets of any bailed-out European country. "People are searching for yield," said of Martin Wilhelm, founder of IfK, a German Kiel-based bond boutique, which runs a bond fund with Acatis; and that is clear as Cyprus just issed at a cheaper cost of funding than Greece (4.95% 2 months ago). In the understatement of the day, Michael Leister, senior strategist at Commerzbank.  said "the risk is that valuations and primary market dynamics aren't related to fundamentals anymore." Cyprus economy is expected to contract 4.2% this year. Like Greece's deal in April, the buyers are expected to largely British- and U.S.-based hedge funds.


Since the bailout, Cyprus CDS spreads have collapsed...


In short: full retard has just gone full-er retard.

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Wed, 06/18/2014 - 09:42 | 4868839 firstdivision
firstdivision's picture

Are they the ones selling the shit out  of Vol this AM?

Wed, 06/18/2014 - 09:43 | 4868852 Arius
Arius's picture

you mean they still got money in Cyprus?

let me call Jack right away ... thanks!

Wed, 06/18/2014 - 09:48 | 4868871 remain calm
remain calm's picture

Obama must not be happy with this blatant discrimination, white bonds are safer than his families black bonds

Wed, 06/18/2014 - 09:51 | 4868877 Gaius Frakkin' ...
Gaius Frakkin' Baltar's picture

“People are searching for yield"

Then give them what they want. Default every year and "give" them +1000% yields. If there's that much dumb money out there, then take it.

Wed, 06/18/2014 - 09:54 | 4868893 LawsofPhysics
LawsofPhysics's picture

Define "money".

Wed, 06/18/2014 - 10:20 | 4868984 Gaius Frakkin' ...
Gaius Frakkin' Baltar's picture

Of course, the only way to keep it going is to add another layer to the fraud. The bigger the lie sort of thing... What are they waiting for?

Wed, 06/18/2014 - 09:50 | 4868884 DoChenRollingBearing
DoChenRollingBearing's picture



Cyprus and other hot spots: Gold, silver, and Bitcoin

USA, Europe, Canada, Oz, etc.: Gold, silver and Bitcoin

Everywhere: add water & food, guns & ammo, etc. to the above.

Wed, 06/18/2014 - 10:16 | 4868965 mrpxsytin
mrpxsytin's picture

Nowhere do you mention young, hot females... 

Wed, 06/18/2014 - 10:42 | 4869107 DoChenRollingBearing
DoChenRollingBearing's picture

I have enough to do around here with my wife around...

Wed, 06/18/2014 - 09:56 | 4868903 Sudden Debt
Sudden Debt's picture

White bonds can't jump and black bonds can't swim!

Wed, 06/18/2014 - 09:42 | 4868840 JRobby
JRobby's picture

"People are searching for yield"

Who cares if it is a Ponzi scheme of a magnitude that no sane person could ever conceive of.................Get yours now before it unwinds / explodes

Wed, 06/18/2014 - 09:42 | 4868841 yogibear
yogibear's picture

So when does Kenya buy $200 billion of US treasuries through their special Federal Reserve account?

Wed, 06/18/2014 - 10:10 | 4868942 JRobby
JRobby's picture

2::35PM today

Wed, 06/18/2014 - 09:44 | 4868844 Arius
Arius's picture

do not be afraid ... believe in God!

Wed, 06/18/2014 - 09:43 | 4868847 Rainman
Rainman's picture

The junkiest of junk on sale for under 5% ,... please, this just gots to be the bottom of the rabbit hole. 

Wed, 06/18/2014 - 10:05 | 4868929 astoriajoe
astoriajoe's picture

Normal rules don't apply when you're actually in the rabbit hole.

Wed, 06/18/2014 - 10:13 | 4868952 JRobby
JRobby's picture

I have some City of Detroit bonds I was willing to let go at 96................

Wed, 06/18/2014 - 09:43 | 4868854 youngman
youngman's picture

The deskie saw the return...and is good for my year end bonus...I am making 4.75%...weeeee

Wed, 06/18/2014 - 09:45 | 4868860 what's that smell
what's that smell's picture

a few years from today when the cypriots default, the "british and americans" will claim their pound of flesh.

yield has nothing to do with it.

Wed, 06/18/2014 - 09:53 | 4868890 BandGap
BandGap's picture

A few years? Riiiiight. When all the other countries in the shitbucket see that Cyprus is getting low cost credit they are going to pile into that hellhole.

Spain and Portugal await.

Give it a year, tops.

Wed, 06/18/2014 - 09:47 | 4868864 LawsofPhysics
LawsofPhysics's picture

Setting up for an ever bigger "too big to fail" moment in history.  I hope the people on that island are arming themselves and training for what is to come.


Motherfuckers in the financial sector will want their pounds of flesh. Fucking cunts, all of them.

Wed, 06/18/2014 - 09:50 | 4868879 lasvegaspersona
lasvegaspersona's picture

so which is it?..poppy field or rice field?

Wed, 06/18/2014 - 09:50 | 4868882 pods
pods's picture

Everything is a ponzi nowadays. This is just the start of another. They will get it and get out before it blows up again.


Wed, 06/18/2014 - 09:53 | 4868891 Sudden Debt
Sudden Debt's picture

jeezz... you go all in on a little horsebet with a horse called "3legged cripple limping horse" and they call you a gambler...

You buy government bonds from a country called Cyprus and you're called "a investor"


go fish...

Wed, 06/18/2014 - 09:54 | 4868894 firstdivision
firstdivision's picture

Tyler, why show a chart of any soverign country's CDS?  ISDA has already made it clear that CDS's will never be allowed to trigger ever again post 2008.

Wed, 06/18/2014 - 09:58 | 4868906 stutes33
stutes33's picture

750mm? Thats a bet for someone.  Mountains out of molehills. Forgot where I was reading this for a moment.

Wed, 06/18/2014 - 10:18 | 4868973 mademesmile
mademesmile's picture

"You went full retard, man. Never go full retard.”

Wed, 06/18/2014 - 10:33 | 4869037 Sorry_about_Dresden
Sorry_about_Dresden's picture

FRBNY is buying the whole lot. What:s another +/- billion of taxpayer's money?

They have Kevin Henry to flip it in the secondary market to some clueless pension fund managers who will be happy to give up a few basis points and take it off their hands.

Wed, 06/18/2014 - 10:51 | 4869183 Navymugsy
Navymugsy's picture

Oh my adopted home country. Such a lovely place to be a slave.

Wed, 06/18/2014 - 11:06 | 4869284 Soul Glow
Soul Glow's picture

Searching for Yield, the new Hollywood movie about dumb assed bankers.

Wed, 06/18/2014 - 11:19 | 4869354 walküre
walküre's picture

A deadbeat is no good to anyone. If you cannot make your current mortgage payments, let us know just how much you can afford to pay. We want you to stay in your home and we are quite flexible in our terms. Just don't stop paying, ok? Pretty please?

Wed, 06/18/2014 - 11:56 | 4869589 Paracelsus
Paracelsus's picture

The EU (Deutsche Bank) armtwists the Cypriot Banks to purchase very risky (worthless) Greek Gov't Bonds (GGB).These default so then the EU says we will give you a bailout contingent upon you first confiscating your depositor accounts (but freeze them first,on a Friday).The EU target seems to have been the "hot money" of Russian oligarchs parked in Cypriot bank accounts.

How can a person or entity be given good credit when just a year before they have not only defaulted on their debt,but stolen the accounts they were given responsibilty for safeguarding? This reminds me of the rating agencies giving zero risk to all that MBS crap now sitting on the FED's books.

A close family relative is a pensioner of the CALPERS fund,and they took a huge hit years ago on that Blackstone trust deal buying up blocks of those Bedford -Stuyvesant,New York,apartments to upgrade them and sell them.This business model was based upon the optimistic hope of the City admin guys scrapping rent controls for this area.A large Florida pension fund also got burned by this deal falling through.

The day will come when risk is reintroduced to the market.There seems to be again a pile of money chasing a limited amount of legitimate investment ventures,and we know how that turned out.


Stop the sale of derivative contracts and the market will normalize somehow.

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