Greek Initial CDS Auction Results: Initial Bond Midpoint 21.75

Tyler Durden's picture

The results from the Greek CDS auction are starting to come in (the full calendar can be found here). Moments ago ISDA, via released the initial results of the Auction, which indicate a preliminary market midpoint based on bids and offers of the defaulted bonds of 21.75, which is roughly in line with where bonds had been trading ahead of the PSI completion, if a little higher than the Cheapest to Deliver, indicating some modest upside to those who bought the CTDs in the final days. The Net Open Interest going into the bidding period which begins at 13:30 GMT and lasts for 30 minutes is a modest €291.6 million, with an offer-heavy side. Then final results will become pulbic in 4:30 hours, at 15:30 GMT.Once again, a full generic run down of the whole physical settlement process can be found here. Finally, what's with the RBS "Adjustment Amount": did the bank once again forget there is a difference between "discount" and "price"? Nothing less would surprise coming from the world's most incompetent bank.

Source: Creditex

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
GetZeeGold's picture



As Joe Biden would say.....this is a big fukkin deal!


Zero Govt's picture

..if he was at work ...or awake

Where is 'Slacker Joe' haven't seen him since the election ?!!

JPM Hater001's picture

Ok folks.  Looks like we have a solid list of the banks most screwed by Greece and currently running for the hills.  I cant think of any other reason someone would buy Greek Debt other than to prop them up.

With a 50% writedown CDS event that makes this an offical 29% loss.

economics9698's picture

MF Global thought Greek debt was a good deal.

ivars's picture

Silver is nicely holding the 32,5 line I predicted it will- more than a year ago-see the charts:

Accuracy : exact. Time of prediction: 1year 1 week ago.

I find it weird, but that is a fact. Today accuracy of this prediction is 99,7%.


a growing concern's picture

I don't buy the gold standard part of your prediction, because that would require that people with sense are in charge, which I don't think will happen.  Aside from that, very nice call on the silver vs. oil relationship and the current price of silver.  That's a pretty nice call from a year out.  Now we'll see if silver gets the erection that you're calling for.  I think it will at the first hint of an official return to printing the shit out of the dollar.

ivars's picture

Yeah, the text around that chart was just ideas at that time, not so important as the chart itself. Let us see what happens in July-August.

WoodMizer's picture

The Bidder list is a who's who list of international debt slave managers.

I thought they were completely hedged against a Greek default; no wonder why the ISDA voted to trigger CDS.  I think the weasels discovered they could socialize losses globally and preserve the CDS market through the default decision.

More money trickling up the pyramid.

gookempucky's picture

+ 100----- Wood definitely looks like the ISDA is/are the primary bidders-- no one else would bid on the junk paper.

slaughterer's picture

"indicating some modest upside to those who bought the CPDs in the final days"--the upside is too mild to justify future CPD speculation. This lesson will carry over into how Portugal will be handled.

Acet's picture

I did spend 6 months once on a contract (as a Freelancer) with RBS' Fixed Income Front-office and I can confirm that compared to all other Investment Banks I worked with, those guys are a joke. It's a place seriously overstaffed by people that don't know much and don't do much - I've never seen so many examples of the Peter Principle in action as I've seen there.

ZeroPower's picture

I can also attest any RBS unit is filled with incompetent fools, though i question how you were brought into an FI unit as a contract...unless you meant internship, which is fine.

The thing with RBS is, even the few really smart people who somehow get stuck there in Dublin, are eager to have a headhunter bring them elsewhere. Nobody ever really 'stays' at RBS unless theyre pigeon holed because of their (lack of) smarts.

LongSoupLine's picture

RBS - "Run By Shitheads"

Zero Govt's picture

Blighty has nationalised banking, whatdya expect

Zero Govt's picture

Buy, Buy, Buy

€2 Trillion in counterfeit wealth from the ECB 'probably' came with some strings attached

So Count Dracula directs his flock of desperate broke bwankers to buy yet more insolvent Govt Bonds: the ECB are in deeper, the banks are in deeper, the Govts are in deeper, and the shambles even greater 

absolute genius problem solving

Alexandros's picture




...the barbarians, who forced beautiful Europe to get down Zeus’ “back” and made her a prostitute.


...the unworthy Europeans, who in 1945 “took Europe down” from “Mount Olympus” and in 2012 relinquished “enslaved” Europe to the Phoenician loan sharks.


…Germany betrayed Europe once again. Germany handed all the European countries over to the Jewish loan sharks, by naively believing that this way they would let Germany free. Germany put the European family at the “target” of the “markets” and it is collecting profits every time one of its members gets “executed”. The loan sharks who pretend to be the “hunters” are shooting safely in the European “hen house” because Germany has managed to “raise walls around” Europe. One after the other, Europeans are destroyed so that Merkel can pay the stupid and artificial German debts to the loan sharks. 


Cast Iron Skillet's picture

ok, so aren't there supposed to be quadzillions of dollars worth of re-re-rehypothecated CDS on Greek debt that will now surely explode the banking system? ... just askin', as I was trying to pay attention during the discussions over the last several months ... I was sort of looking forward to at least sort of a small apocalypse.

Watson's picture

If you are looking for an apocalypse originating from the OTC market, may I suggest interest rate swaps and the Libor-fixing investigations:

Genuinely very big market (50%? total OTC);
The current losers (on the values used so far) are big enough to employ tenacious lawyers;
The current winners will have paid out (bonuses/dividends) least some of the profits - thus weakening the institution in the event of a re-calculation;
Sufficiently straighforward contract such that if you actually get the real numbers it is difficult (even for a lawyer) to argue about the calculation or the (unpleasant) result;
BBA (the guys who handle the administration of Libor) have distanced themselves;
And if you believe the bank Libor quotes over the stressed period, then you are in a fairly small minority...

vote_libertarian_party's picture

I'm curious as to if any business journalist has figured out who is eating the losses and how much.  Maybe some public companies will have to say for quarterly reports if they eat a big loss.

Was the Federal Reserve on the "don't eat losses" side of the fence?  They never said they were holding.



Lord Blankcheck's picture

As of January 2011 any Fed losses go directly to the UST.