EFSF Issuance Proclaimed Success Even As Risk Hits 4 Month Highs

Tyler Durden's picture


The EFSF 'firewall' issued EUR3 billion 7-year bonds this morning. It seems any time any European entity actually manages to issue debt, it is proclaimed as miraculous evidence of investor demand and comfort with these risks. In this case, we are told, via Bloomberg, that:


So the self-dealing continues to grow the ponzi ever bigger. However, what few will mention is that 10Y EFSF spreads (the risk premium over Bunds to hold these government-guaranteed exposed-to-Europe's-entrails) broke above 150bps today for the first time in over four months and are now over 35% higher than at the start of April. Success Indeed.


Chart: Bloomberg

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Tue, 04/24/2012 - 12:02 | 2370159 Dr. Engali
Dr. Engali's picture



"EFSF Issuance Proclaimed Success"


Reminds me of a Mission Accomplished banner I've seen some place. My guess is that one is about as accurate as the other.

Tue, 04/24/2012 - 12:06 | 2370178 mayhem_korner
mayhem_korner's picture



The farce is strong with this one.

Tue, 04/24/2012 - 12:23 | 2370231 idea_hamster
idea_hamster's picture

[A]ny time any European entity actually manages to issue debt, it is proclaimed as miraculous evidence of investor demand

You say that like it isn't miraculous -- I kind of think it is.

I recall reading about this band of Vikings from Finland that only ever attacked one coastal town in Sweden -- over and over.  Every time they showed up, the Swedes had rebuilt and the Finns -- who always expected to find them gone -- were stunned to find that they were sitting right there, waiting to get beaten up and burnt down.  Again.

It's a bit like Stolper's client list -- are they really still there getting 'muppet-ed' over and over?

Tue, 04/24/2012 - 12:05 | 2370160 Dick Darlington
Dick Darlington's picture

Noda is watching, watching, watching, grabbing EFSF ponzi bonds and back to watching, watching, watching...

Tue, 04/24/2012 - 12:05 | 2370173 mayhem_korner
mayhem_korner's picture



Would it be a sign of good news if the EFSF was hiring?  Y'know, job growth and all...

Tue, 04/24/2012 - 12:08 | 2370181 SheepDog-One
SheepDog-One's picture

Anything to get thru just 1 more day. Same story tomorrow as well.

Tue, 04/24/2012 - 12:14 | 2370209 mayhem_korner
mayhem_korner's picture



SD, you seem a bit down today.  I might suggest a full frontal rant. 

Tue, 04/24/2012 - 12:41 | 2370329 Everybodys All ...
Everybodys All American's picture

The joke telling continues unabated. This will be fun to watch these jackasses scrambling to cya when this goes under.

Tue, 04/24/2012 - 12:11 | 2370193 AmCockerSpaniel
AmCockerSpaniel's picture

Was that demand from the banks, using BIG BEN (Fed) money they got thru those swap lines? I know we are never deceived, but there has to be a first time.

Tue, 04/24/2012 - 12:12 | 2370200 Vince Clortho
Vince Clortho's picture

It is indeed comforting to note that amid all the turmoil, the Central Planners are resolute and unfazed, continuing to execute their prime directive of continuous printing.

Tue, 04/24/2012 - 12:18 | 2370227 LongSoupLine
LongSoupLine's picture

US and Europe...


Ponzi tag team partners.

Tue, 04/24/2012 - 12:22 | 2370253 youngman
youngman's picture

Not one "individual investor" bought one.....just Governments and Central Bankers....the new world market...we little folk are not allowed to play anymore...nor can we..7 years at 2%...lol

Tue, 04/24/2012 - 12:28 | 2370274 YesWeKahn
YesWeKahn's picture

They lie to keep their jobs.


Tue, 04/24/2012 - 14:08 | 2370677 Quinvarius
Quinvarius's picture

Strong support from central banks and government operated sovereign wealthfunds, huh?  Yep.  That certainly sounds like strong support to me.

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