Greece Just Gave Everyone The Best Trade Opportunity Of The Year

At an annualized return of approximately 20,622,184,553,370,800,000,000,000,000,000,000,000,000,000%, Greece just gave everyone the best trade opportunity of the year...

Yesterday we highlighted the most important security for Greece and why it was so crucial that this Samurai bond be fully paid.

Overnight, as The FT reports, Mizuho Bank, acting as the agent for the yen-denominated note, confirmed that the outstanding Y11.7bn ($94.5m) payment was made on Tuesday morning in Tokyo.

Rating agencies including Fitch and Standard & Poor’s had separately stressed that payments missed to bodies such as the IMF or the European Central Bank would not constitute a ratings default; but as The FT goes on to note, when Fitch most recently lowered its sovereign rating on Greece to triple C, it said a default on privately held bonds was “a real possibility”.

 

Credit analysts in Tokyo had warned that a default on the samurai note could have led to defaults on public bonds that Greece had issued in other currencies.

With hours to go before payment was due, the market had shown a 50:50 chance of default, as according to Bloomberg data, the bond's last trade was at 58.50 yesterday.

 

Today it has matured at Par, fully repaid (as Greece fails to pay another IMF tranche) for a 71% overnight return, but not before we said the following...

Chart: Bloomberg