Who Bought The New Greek Bonds: Here Is The Answer

After triumphantly returning to the bond market three years after it last issued a euro-denominated long bond (which one year later nearly defaulted when only a third bailout prevented Grexit), this morning Bloomberg has provided details of who the lucky buyers of the just priced €3BN bond offering were. And not surprisingly, the biggest source of new funds for the Greek government (which will then use most of this to pay interest owed to the ECB) were US buyers.

As Bloomberg notes, just under half, or €1.425BN of the €3BN deal was new money with €1.57b of existing paper rolled, with the following geographic distribution of new sources of cash:

  • U.S. 44%
  • U.K./Ireland 26%
  • Greece 14%
  • France 7%
  • Spain/Portugal/Italy 3%
  • Germany/Austria 3%
  • Others 3%

By investor type:

  • Fund managers 46%
  • Hedge funds 36%
  • Banks/private banks 13%
  • Others 5%

Meanwhile, roughly half, or €1.574BN of the existing bondholders rolled into the new issue, as follows:

  • Greece 75%
  • France 11%
  • Switzerland 6%
  • U.K./Ireland 4%
  • U.S. 3%
  • Others 1%

And by investor type:

  • Banks/private banks 74%
  • Fund managers 16%
  • Hedge funds 5%
  • Insurance 4%
  • Others 1%

But the best news of all for this new batch of mostly American investors: the bonds are already profitable: the new 5Y bonds were trading tighter one day after the country’s first sale in three years.

The spread on new Greek paper to the underlying Obl ~8bps lower, according to Bloomberg data. The bonds, which were launched at +476.7bps, are now being quoted by Greek banks at 99.32 bid, or +468.6bps as of noon London time.