Greek 1 Year Hits 763%

Tyler Durden's picture

If it seems like it was only 5 days ago that Greek bonds could be had for the blockbuster yield of 638%, it is because it was As of today, the same bond was yielding an even more ridiculous 763% (and remember when the MSM fluffers were telling you to buy these at the bargain basement yield of 100% in September 2011?). This price has nothing to do with the Fitch action on the country which is irrelevant, and all to do with the fact that, as noted previously, the cash coupon on the post-reorg bonds was cut once again, this time from 3.6% to just 2%, and the current price on non UK-law bonds is merely indicative of the cash on cash return investors in these bonds expect to make. It also means that the market expects a redefault in just about 1 year. And yes, we realize that at bond prices in the high teens, the yield curve is absolutely meaningless but it is still highly entertaining to watch as Greek bond yields are about to hit quadruple digits, which in itself is very indicative of the recoveries one can expect in a global sovereign ponzi, and yet the powers that be tell us this is a perfectly normal phenomenon, i.e., there is no default, and thus there is no reason to hedge for it. Alas, the whole world has gone mad.

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slaughterer's picture

Now is the time buy the GGGB 1YR!  I feel sorry for all those suckers who bought last week when the yield was a mere 638%. /sarc.

GetZeeGold's picture



Heh heh.........BOOM........winning!!!!




Buckaroo Banzai's picture

And it hasn't even gone parabolic yet.

WonderDawg's picture

Good thing they finally concluded the bailout deal on Tuesday, no telling what the yield would be today without it.


fockewulf190's picture

Anyone wanna bet if the 1 year hits 1000% the Bundestag votes no?

theMAXILOPEZpsycho's picture

Keeping my powder dry for 1000%

Then I'll be all in on Greece, with my coffee shop due to open next month as well

The time to buy is when there's blood on the streets

silverbullion's picture

I feel sorry for the fiat paper suckers... a dirty, dirty habit I tell you.

BW's picture

Price propaganda.  They are going to print.

Fips_OnTheSpot's picture

4-digit is the new normal

battle axe's picture

And you get a free goat with every bond.....

bpom's picture

And you get a free goat with every bond.....or a barbecued kid on a stick.

GetZeeGold's picture



That and a 1/20 time share on the Acropolis.




bdc63's picture

Hmm ... goat ... 1/20th time share ... throw in all the baklava I can eat and I'm IN!

Kaiser Sousa's picture

763% sounds like a bargain...

sign me up.....

for fucks sake man..........when r these poor bastards gonna murder their bitch made banker owned politicians???????????

Ratscam's picture

when they have to offer their 111 tons of gold, agreed under UK law in luxembourg jurisdiction, in exchange for the soon to fail 2012 paper bail out money.

flacon's picture

Yikes. That news escaped me. I"ll have to go look it up. 

Kaiser Sousa's picture

"But down there in the small print of the Greek deal lies the nasty side for Greece. There lies a heavy penalty clause; Greece's lenders will have the right to seize the gold reserves in the Bank of Greece under the terms of the new deal. Greece has 111 tonnes of gold. In other words Greece has given up on its "money in extremis", gold. If they default they will have nowhere else to go. Its international assets will be seized and it will not be able to trade internationally at all."

Matt's picture

How much gold to you get?

If you buy these 700+ percent one year bonds, they get swaped out for 2 percent notes, but then when those fail, you get gold, right? how much gold for how many euros?

LawsofPhysics's picture

An offer we can't refuse?  This is absurd, when will U.S. bonds have this kind of yield?

GeneMarchbanks's picture

March should basically dictate the market until summer. Supernova or 2008 Redux?

tim73's picture

763 percent profit! Now we are talking! Better call my Nigerian contact, their offer sucks now.

PaperBear's picture

Why is this financial instrument having its price move if there isn't anyone buying or selling it ?

disabledvet's picture

This is not madness. Madness is German yields this low relative to all the others. Talk about a PREMIUM. Remember ...the goal in the USA has always been to "get banks lending again." you could have 100 billion euro's in your bank and still be all the Greek banks have discovered!

Lucius Cornelius Sulla's picture

If you think it is madness then why not short them?

marcusfenix's picture

beware the PIIGS of march...

lolmao500's picture

Fitch saying the exchange of bonds is DEFAULT.

LawsofPhysics's picture

I saw that.  If this is really the case then pull the fucking CDS trigger already.  

bdc63's picture

no can do ... it's not a default until the bankers that wrote the CDSs say it's a default ... and that'll happen about week after Newt's biodome community on the moon is operational ...

LawsofPhysics's picture

Yep, precisely why I placed my money on the devils we know and commodities at the begining of the year.  Some things never change. It has paid off so far and will re-adjust in March.  Dare I say, same as it ever was.

rsnoble's picture

Make up rules on the fly. The worse things get the more bs they will come up with. I'm sure of it.  Last but not least could be "we need your gold now".

konputa's picture

After Greece defaults there will only be PIIS

bpom's picture

It seems right to rebalance the acronym by adding in Senegal,  Slovakia,  or Slovenia.

Dick Darlington's picture

 Feb. 22 (Bloomberg) -- Cypriot banks will suffer the
second-highest losses from the haircut on Greek debt after
Greece’s own lenders, state radio CyBC reported today, citing
economist George Charalambous.
     The losses for the Cypriot banks, which hold 5 billion
euros ($6.6 billion) in Greek government securities, are
equivalent to 20 percent of Cyprus’s economy, Nicosia-based CyBC
said, citing Charalambous. He served as chairman of the
Securities and Exchange Commission from 2006 to 2011.

Alex Kintner's picture

My "Buying Bonds 101" book does not have a chapter on 3 digit rates. Things are truly Different This Time. I'm all in. Retirement here I come.

FrozenOut's picture

Are there yield numbers that will crash established data systems?

FrozenOut's picture

Are there yield numbers that will crash established data systems?

Ponzi Unit's picture

Cognitive dissonance, anyone?

So, Greek debt is now an 8-bagger and default is officially off the table. You don't need a weatherman to know which way the wind blows.

We are way down the rabbit hole, still falling... still gaining speed...

tim73's picture

So they are playing with a bond instrument that has no relation to real world!? Sweet, just put a symbol into a bourse and start playing! Real companies are so last century.

HurricaneSeason's picture

Is the interest on those bonds taxable and what is the minimum purchase amount? I can't finf it on Ameritrade.

Olympia's picture

World War III - The First Private War in History


Those who won all battles shall lose the war.

Bilderberg Group and the crimes against humanity.


This is how things work in all countries. Whatever used to belong to their people, today it belongs to the multinational companies of the Club. People were betrayed by their given leaderships and they lost everything. Capitals and markets were handed to the Club bosses. If you understand what is going on in Greece, you can understand what is going on in Britain, France, and Germany etc..



Sandmann's picture

I don't understand yields of 763%......could you explain them as Odds instead ?

Temporalist's picture

Sure. The odds of Greece paying back their debt is 0%.

Alex Kintner's picture

Forget the interest. It's 763 to 1 odds that you'll even get your principal back.

That's the way I read it anyway.

Temporalist's picture

Whoops I didn't do the proper odds notation.  The odds of Greece paying back their debt is 1:fucking never.

Willzyx's picture

If par is $100, maturity is 1 year, payment is $2, and the stated interest rate is 763%, a financial calculator says the present value of a Greek 1 year bond is $13.35 (down from $100).

The coupon is the easy part.  A $2 coupon on a $13.35 bond represents a return of about 15%.  The remaining 748% return comes from the assumption that Greece will pay back the full par value of $100 at maturity a year from now, on a bond purchased for $13.35.  We all know that won't happen.

Temporalist's picture

I saw that BDI has dropped to 700.