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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Fri, 02/17/2012 - 14:08 | 2170470 Peter K
Peter K's picture

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

Fri, 02/17/2012 - 14:16 | 2170546 machineh
machineh's picture

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

Fri, 02/17/2012 - 15:50 | 2170992 trav7777
trav7777's picture is the par now?  .000001?

Fri, 02/17/2012 - 20:04 | 2171882 kaiserhoff
kaiserhoff's picture

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

Fri, 02/17/2012 - 14:32 | 2170571 gmrpeabody
gmrpeabody's picture



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!

Fri, 02/17/2012 - 14:39 | 2170653 Conman
Conman's picture

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

Fri, 02/17/2012 - 15:00 | 2170773 bobola
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.......

Fri, 02/17/2012 - 15:06 | 2170809 ChitownTrader
ChitownTrader's picture


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

Fri, 02/17/2012 - 15:14 | 2170852 NewThor
NewThor's picture

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

Fri, 02/17/2012 - 15:23 | 2170890 TruthInSunshine
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.

Fri, 02/17/2012 - 15:50 | 2170993 trav7777
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

Fri, 02/17/2012 - 15:36 | 2170938 Squid Vicious
Squid Vicious's picture

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

Fri, 02/17/2012 - 15:08 | 2170819 FlyoverCountryS...
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.

Fri, 02/17/2012 - 15:36 | 2170940 SmoothCoolSmoke
SmoothCoolSmoke's picture

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

Fri, 02/17/2012 - 14:10 | 2170484 slaughterer
slaughterer's picture

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

Fri, 02/17/2012 - 14:13 | 2170519 Dick Darlington
Dick Darlington's picture

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

Fri, 02/17/2012 - 14:18 | 2170559 EscapeKey
EscapeKey's picture

Greece is now a penny stock.

Fri, 02/17/2012 - 14:31 | 2170622 combatsnoopy
combatsnoopy's picture

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

Fri, 02/17/2012 - 15:08 | 2170806 TruthInSunshine
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.

Fri, 02/17/2012 - 14:26 | 2170603 Mr Lennon Hendrix
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?

Fri, 02/17/2012 - 14:10 | 2170489 user2011
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 ?


Fri, 02/17/2012 - 14:13 | 2170504 slaughterer
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?

Fri, 02/17/2012 - 14:20 | 2170572 Citxmech
Citxmech's picture

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

Fri, 02/17/2012 - 14:12 | 2170512 zilverreiger
zilverreiger's picture

Or does  one have to hold them 1 year?

Fri, 02/17/2012 - 14:16 | 2170520 Ex-Pat
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.

Fri, 02/17/2012 - 14:15 | 2170539 Tyler Durden
Tyler Durden's picture

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

Fri, 02/17/2012 - 14:19 | 2170566 blu
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.

Fri, 02/17/2012 - 15:14 | 2170844 Clampit
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.


Fri, 02/17/2012 - 17:24 | 2171425 Anonymouse
Anonymouse's picture

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

Fri, 02/17/2012 - 14:21 | 2170580 AccreditedEYE
AccreditedEYE's picture


Fri, 02/17/2012 - 15:07 | 2170817 NewThor
NewThor's picture

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

Sat, 02/18/2012 - 02:38 | 2172449 SeattleBruce
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?

Fri, 02/17/2012 - 15:27 | 2170896 TruthInSunshine
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.

Fri, 02/17/2012 - 15:33 | 2170920 Curtis LeMay
Curtis LeMay's picture

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

Fri, 02/17/2012 - 19:41 | 2171834 ozziindaus
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

Fri, 02/17/2012 - 14:34 | 2170631 xela2200
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%.

Sat, 02/18/2012 - 07:41 | 2172624 TruthInSunshine
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.

Sat, 02/18/2012 - 02:10 | 2172431 chindit13
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.

Fri, 02/17/2012 - 14:10 | 2170496 CvlDobd
CvlDobd's picture

Where is my fucking blue pill?

Fri, 02/17/2012 - 14:16 | 2170543 john39
john39's picture


Fri, 02/17/2012 - 14:12 | 2170507 ZackAttack
ZackAttack's picture

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

Fri, 02/17/2012 - 14:17 | 2170549 Dick Darlington
Dick Darlington's picture

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

Fri, 02/17/2012 - 14:18 | 2170554 Reese Bobby
Reese Bobby's picture

I miss Ignatius.

Fri, 02/17/2012 - 15:16 | 2170859 green888
green888's picture

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

Fri, 02/17/2012 - 14:12 | 2170508 disabledvet
disabledvet's picture

So what happens when this happens to California?

Fri, 02/17/2012 - 14:15 | 2170532 LawsofPhysics
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.

Fri, 02/17/2012 - 14:57 | 2170761 RichardENixon
RichardENixon's picture

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

Fri, 02/17/2012 - 15:37 | 2170942 tmosley
tmosley's picture

That made me chuckle.

Fri, 02/17/2012 - 21:37 | 2172047 SAT 800
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.

Fri, 02/17/2012 - 14:15 | 2170541 blu
blu's picture

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

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