Greek 1 Year At 629%, Biggest One Day Jump In Yield Ever

Tyler Durden's picture

Ze Price Stabeeleetee...

One day yield moves. Self explanatory:

charts via BBG

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Peter K's picture

Thank God (with capital G) that the ECB got out in the nick of time:)

machineh's picture

'We're alright, Jack -- shame about all you newly-minted SUBORDINATEES. God's mercy on you swine!'

trav7777's picture

um....wtf is the par now?  .000001?

kaiserhoff's picture

Poor Leo.  At least he still has his Chineee Solahs.

gmrpeabody's picture

 

629%....

Which is exactly why there will be no default. The PTB will simply not let those kind of profits go un-realized.

Print.., print.., print, the little people pay!

BTW..., is a 75% haircut inclusive of the returns on interest, or just the principle? Because a 75% haircut on a 629% profit ain't bad. I'd buy that for a dollar!

Conman's picture

Even if it is principle, 75% off the principle * 629% interest is still very profitable. Where do i buy?

bobola's picture

Baltic Dry index is dropping again - at 723 right now.

With the 1 year Greek bond quickly heading north again, we could see these 2 intersect near 700.

We live in interesting times.......

ChitownTrader's picture

lol

too bad the baltic dry means nothing anymore, well I guess Greece doesn't either

NewThor's picture

I'd forgive Ben Bernanke if he found a way to print hot women that made sound choices.

TruthInSunshine's picture

The irony that Greece was known for its outsized (relative to GDP) shipping industry, or that Jackie O was remarried to Aristotle Onassis, a Greek shipping magnate, after the jackals of fractional reserve deeds whacked JFK.

trav7777's picture

she needed dick with a fat ass wallet...bitch like that wasn't going to be buying off the rack and flying coach

Squid Vicious's picture

nothin from nothing leaves.... bullish! on to 1450!!

FlyoverCountrySchmuck's picture

As long as someone is buying, even at 629%, they will keep selling. It's not like they ever intend to pay it back.

As a black man once told me, it's not "Debt", if you never intend to pay the bill.

SmoothCoolSmoke's picture

Was the color of the man pertinent?  C'mon.....

slaughterer's picture

Makes the good old days of 400% yield just two months ago look ordinary.

Dick Darlington's picture

Oh those were the days indeed! Warm, fuzzy memories.

EscapeKey's picture

Greece is now a penny stock.

combatsnoopy's picture

OTC, pink sheets.  About to be acquired by Bain Capital who will drain them for bankruptcy fees. 

TruthInSunshine's picture

Greece is now owned, lock, stock & barrel, by The Money Masters.

 

They now are on to their next targets, more nations that formerly collectively believed they were democratic, free & sovereign.

Mr Lennon Hendrix's picture

400%?  It was under 100% last summer.  If Mother Fucking Global went under a few months ago I wonder how ASSGEN is holding up?

user2011's picture

Please help me to understand this.   For 600% a year.  If I buy the bond and flip it the next day, I will have close to 2 % gain.   Am I right ?

 

slaughterer's picture

Not really.   Who or what is going to pay your interest?   How much will you be able to sell it for tomorrow?  Who will buy it?

Citxmech's picture

Musical chairs for keeps, bitchez.  Music's still playin' - are you in?

zilverreiger's picture

Or does  one have to hold them 1 year?

Ex-Pat's picture

Maybe you will not collect the yield and then tomorrow, nobody will buy the bond that you try to sell for a 2% loss in price per day.

Tyler Durden's picture

You get 600% if you hold them to maturity and they get repaid in full.

blu's picture

Lotta "ifs" in there. Oh and you should have mentioned, you might get paid in Drachmas at some unknown rate of exchange against the original Euros. Or maybe even, paid in ripe olives at the warehouse in Athens, you ship. This could end up anywhere.

Clampit's picture

 

Would Drachma's count as a credit event?

Sounds like a nice insurance product - either I loose the money and get to enjoy watching a credit event, or the perpetual motion can defys all odds and I suffer with 6x the euros in my pocket ... I'd have said sign me up long ago if I even vaguely trusted this was the deal at hand.

 

Anonymouse's picture

I believe ISDA already has demonstrated that the concept of a credit event has a fluid definition at best

NewThor's picture

What was the bond yield at 1 year ago? Do those people get paid today?

SeattleBruce's picture

At some point in the last year, the 1 year went from about 5% to about 40% - it depends on whether you got in on that move - but there seems to be a gap in the chart - were the Greek 1 years selling last spring - or did they shut them down for a while?

http://www.bloomberg.com/quote/GGGB1YR:IND/chart

TruthInSunshine's picture

Minor quibble:

You only get 600% if you hold them to maturity and get repaid in full and the € retains its relative value until that time.

Curtis LeMay's picture

LMAO. Sorta like going to the track and blowing the rent money on a "sure thing"...

ozziindaus's picture

There is a Tier 2 open market for trading Bonds in the US. I honestly don't know if the same exists for Greek Bonds

http://www.sec.gov/answers/bondselling.htm

xela2200's picture

Please help me to understand this.   For 600% a year.  If I buy the bond and flip it the next day, I will have close to 2 % gain.   Am I right ?

------------------------------------------------

I am sure some guy said the same thing last week when the yield was 400%.

TruthInSunshine's picture

I meant to tell him earlier that if buys the bond with a coupon of 600% and flips it the next day, he could theoretically have close to a 2% (or 600%) loss, depending on whether Greece a) imposes haircuts on creditors (with the EU's blessing), b) gets bailed out and stays in the EU, c) decides, along with the EU, on some other hybrid or variant plan.

These are lottery tickets, plain and simple. But they don't represent the black & white calculus of winning or losing that lottery tickets do.

These bonds are riddled with possibilities.

chindit13's picture

It's a complex formula, but the key part is "imputed interest".  Greeks no longer impute.  Implode and imperil and "imbarrass" maybe, but impute, no.

CvlDobd's picture

Where is my fucking blue pill?

ZackAttack's picture

Anyone remember when Leo told us these were a screaming buy with a 7% coupon?

Dick Darlington's picture

I can still hear the screaming. But soon the lamb will go silent.

green888's picture

I miss Incatatus (but maybe he is dressed as the pantomine horse, plenty of them )

disabledvet's picture

So what happens when this happens to California?

LawsofPhysics's picture

good question, I suspect it won't matter by that point.  Now if you will excuse me I have to buy and hold some paper for about 0.0000000001 seconds.

RichardENixon's picture

I thought all you buy and hold guys had given up by now.

SAT 800's picture

Very good. Your screen name is always a pointed reminder that the current debacle did have a beginning, and a perpetrator; and we know who he was. Richard, "I am not a crook, " Nixon. But, He was.

blu's picture

Everyone gets a pony. I mean what do you expect? It's California fer gawd's sake.