One Day Ahead Of PSI Deadline, IIF Can Only Account For 39% Of Greek Bondholders

Tyler Durden's picture

The problem with the latest hare-brained scheme in Europe, namely to organize Greek bondholders among the various institutions that for 2 years did everything in their power to dump said Greek bonds in the open market, is that said institutions end up having no Greek bonds in inventory just at the time when they are supposed to have Greek bonds, 24 hours ahead of the Greek PSI deadline. As a reminder, participation in the PSI has to be 75%, with a CAC threshold of 66%,  and according to some interpretations even 50% of Greek bondholders voting for the PSI will be sufficient. Which means that with the PSI conclusion just around the corner, or 8 pm Athens time time tomorrow, the IIF, which is the consortium of entities that have every interest in perpetuating the status quo (i.e., do not have Europe ransom demands) and more than happy to "volunteer" for a 70%+ haircut, the IIF only has...


So according to the IIF itself, 24 hours ahead of the deadline, it does not even have a majority of bondholders accounted for, let alone the plurailty needed for CAC trigger activation. Where are the other €145 billion in Greek bondholders? Why just call up Jeff Sabin at Bingham at 212.705.7747 and find out first hand.

Here is who has agreed to participate so far:

Ageas, Allianz SE, Alpha Bank SA, Axa SA, La Banque Postale, Banco Bilbao Vizcaya Argentaria SA, BNP Paribas SA, CNP Assurances SA, Commerzbank AG, Credit Agricole SA, Credit Foncier, Dekabank Deutsche Girozentrale, Deutsche Bank AG, Dexia SA, Emporiki Bank of Greece SA, Eurobank EFG, Assicurazioni Generali SpA, Greylock Capital Management, Groupama SA, HSBC Holdings Plc, ING Bank, Intesa Sanpaolo SpA, KBC Groep NV, Marfin Popular Bank Plc, Metlife Inc., National Bank of Greece SA, Piraeus Bank SA, Royal Bank of Scotland Group Plc, Societe Generale SA and Unicredit SpA.

More from Bloomberg:

Investors with holdings amounting to 39.3 percent of the Greek bonds eligible for the nation’s debt swap agreed to sign on, moving the country closer to the biggest sovereign restructuring in history.


The 30 members of the private creditor-investor committee for Greece who plan to participate in the swap hold an aggregate 81 billion euros ($106 billion) of bonds, according to an e- mailed statement from the Institute of International Finance today. The offer ends at 8 p.m. Athens time tomorrow.


The goal of the exchange is to reduce the 206 billion euros of privately held Greek debt by 53.5 percent and turn the tide against the debt crisis that has roiled Europe for more than two years. The government said it will use collective action clauses to force holders of Greek-law bonds into the swap if necessary.


“I do fully expect to be part of the collective action clause,” Patrick Armstrong, managing partner at Armstrong Investment Managers in London, said today in a Bloomberg Television interview. He won’t voluntarily join in the swap because of the “minuscule” chance his bond maturing March 20 will be redeemed at face value.


Greece’s six largest banks plan to accept the offer, the Finance Ministry said late yesterday. Those lenders held about 42 billion euros of bonds eligible for the swap at the end of September, company reports show, making them crucial to the exchange. Greek pension funds with about 17 billion euros of debt will also join, Finance Minister Evangelos Venizelos said on Real FM Radio today

Now assuming that none of the banks have sold their bonds since Q3, and adding their holdings to the IIF's assuming no doublecounting, means that at most there is 68% participation of the entire €206 billion class. Hardly enough for the 75% participation rate.

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GetZeeGold's picture


I would point out only missing 61% is pretty damn good for government work.



marcusfenix's picture

yeah, better than the TSA, who in a nation wide test, missed 70% of the banned items planted on test passengers in airports, both the scanned and groped.

government bureaucratic efficiency,like the unicorn, is a fairytale, it simply does not exist.

but it sure does cost you and me a fortune to fund the illusion. 

Comay Mierda's picture

they are radiating you in security checkpoints for no good reason. look how easy it is for this guy to go through the scanner with metallic objects.  better watch this video before youtube restricts it

Hugo Chavez's picture

Too bad we are still in the sawkward phase where we know there is a problem but it is still not ok to shoot them.

IndicaTive's picture

DAMN! And all this time I've been duct-taping weed to my taint. Easy enough to do...though removing it hurts like a bitch!

Carl Spackler's picture

It's all moot. The system broke down back in 2008, when we let a terrorist move into the White House.  

Dr. No's picture

Missed 70% of items and still no recent hijakings.....huh.  who would have thought?

CPL's picture

39% is the new 100%!!


Job well done everyone!  High Five!

SheepDog-One's picture

Calling all bondholders...all Greek bondholders please report in....hello?

resurger's picture

i know you are one of them!


CPL's picture

...Le numéro que vous avez atteint n'est pas en service.


<shit better check the Dutch>


Het nummer dat u hebt bereikt, is niet in dienst


<Fuck!  nobody picking up today, must be a cold out there or something.  Check with Germany>


Kunnen we over invasie?


<Crazy Krauts...I wonder if China is home>




<ummm, what?  Better call NYC to see if anyone there is up>


...the number you are calling is not in service, please hang up and try again.

DutchDude's picture

Dude; your German is in Dutch! We ain't paying for zee Germans ;)

CPL's picture

I always fuckup German and Dutch, lol.  Danish and Flemmish are the only language in the germanic language family that I could pick out of a conversation because it sounds so alien.

DutchDude's picture

Thou art forgiven ;)

johnQpublic's picture

will the real greek bondholders please stand up, please stand up, and throw a middle finger on each hand up, 'cause the ECB is out of their minds and out of control, and one more time tell me how does it go?

fourchan's picture

lol nobody wants to admit they fucked up. the holders, would rather just try to take the loss

and write it off silently. goldman, jp, citi ect its going to get real pretty damn soon.

VisualCSharp's picture

Default. C'mon, you know you want to...

azzhatter's picture

I'm a little confused(normally) but CNBC was claiming they had 72% as of yesterday? How are they formulating their number or just making it up?

CPL's picture

The file with the information given was pulled from the filing cabinet of ass.

swani's picture

@ azzhater

Are you seriously asking if CNBC is spinning tall tales by quoting analysts or 'experts' that are spinning tall tales? PLUUUUUEASE 

chinaguy's picture

Who the hell cares? the ADP numbers were a beat.

Robslob's picture



But by tomorrow morning mysteriously and magically money will come from nowhere (hint central banks) to incent people to take haircuts while funneling "backdoor" money from the people of the world...known as taxes and inflation!

resurger's picture

The Headline Tomorrow


the S&P will add 70 points

cygnetsong's picture

It's a lock.  Either they will use the "interpretation" that they only need 50% participation, or they will magically find the remaining bondholders. 

My bet:  at the last minute and under the table, they will print and sell a bajillion Euros worth of bonds to Illuminatii Holdings, LLC, who would naturally participate, bringing the participation rate up to the threshold.

resurger's picture

Of course .... desperate banksters who would clutch at straws

fuck em; Say Amen

swani's picture

Rehypothecated ponzi credit coming through back doors, originating from usual suspects freshly laundered through their preferred money laundering center in the City of London where there are no limits to the ponzi supporting credit creation from the endless rehypothecation of regurgitated 'collateral'.

JPM Hater001's picture

Why does this remind me of someone running around Stormwind yell "Please Join MY GUILD!!!!"

"What is your guild name?"

"Total failure."

"I'm definitely in..."

resurger's picture

The Alien Bankers from Mars will take part in the PSI, dont worry!


CPL's picture

Impress people with Dancing bear droods by the fountain in Stormwind.

Moneyswirth's picture

Ha Ha Ha Ha Ha Ha


Unprepared's picture

Deal or no deal?

SheepDog-One's picture

Missing only 60% of the bondholders? Sounds like a done deal to me! Good enough!

johnQpublic's picture

for the greeks, meal or no meal?

SheepDog-One's picture

'Sugar Daddy Dating'....WINNING!

israhole's picture

Just print the money already!

SheepDog-One's picture

Yea what the hell is with all this bullshit jabber jawing and monkeying around? Just PRINT up the damn funny money already!

PaperBear's picture

How many deaadlines does this make ?

mendigo's picture

Hard to keep track.
But definitely approaching final deadline - for establishing scedule for further negotiations (ie coctail hour)

CPL's picture

I lost count last year at 47.

marcusfenix's picture

you see, deadline isn't actually a deadline anymore, it is now-

"date of extension agreed upon until a new date of extension is agreed upon"

and so on.

like debt, deadlines can now be rolled over pretty much forever...

Overflow-admin's picture

Hey that behaviour is inacceptable!


(same occuring where I work)



OldTrooper's picture

They are going to invoke the double secret probation CAC clause.

SheepDog-One's picture

'According to some interpretations, only 50% may be sufficient'....well its ALL Greek to me!

mayhem_korner's picture



39% is a better "accounted for" rate than MF Global

Stuck on Zero's picture

The missing bonds were bundled with Tucson 2nd. mortgages, rated AAA, and sold off to Ben.

mayhem_korner's picture



They were not sold off to Ben.  They were rehypothecated to Ben from Jon.

Robslob's picture



Instead of the movie "No Country for Old Men"

we move to

"Only Countries for Old Men"