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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firstdivision's picture

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

Arius's picture

you mean they still got money in Cyprus?

let me call Jack right away ... thanks!

remain calm's picture

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

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.

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?

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.

mrpxsytin's picture

Nowhere do you mention young, hot females... 

DoChenRollingBearing's picture

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

Sudden Debt's picture

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

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

yogibear's picture

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

Arius's picture

do not be afraid ... believe in God!

Rainman's picture

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

astoriajoe's picture

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

JRobby's picture

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

youngman's picture

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

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.

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.

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.

lasvegaspersona's picture

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

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.


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...

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.

stutes33's picture

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

mademesmile's picture

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

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.

Navymugsy's picture

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

Soul Glow's picture

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

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?

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.