Greek bonds pricing default? 1-year 82%

Discussion in 'Economics' started by the1, Sep 5, 2011.


  1. I haven't got a clue how bonds work as i don't ever trade them.. :cool:
     
    #11     Sep 5, 2011
  2. morganist

    morganist Guest

    No I know it is not right. I was just trying to give a polite response to say so.

    Anyway bonds have changed. Now you have haircuts and repayment reductions. In other words you don't get what you were originally promised.
     
    #12     Sep 5, 2011
  3. clacy

    clacy

    Saving them from default is what I meant.
     
    #13     Sep 5, 2011
  4. morganist

    morganist Guest

    Remember the value has a negative correlation to the interest rate.
     
    #14     Sep 5, 2011
  5. morganist

    morganist Guest

    I have said it before. They just need another SDRM. Another way of doing it.
     
    #15     Sep 5, 2011
  6. Bob111

    Bob111

    #16     Sep 5, 2011
  7. morganist

    morganist Guest

    No. Bonds have a negative relationship between the interest rate and the value. The value is at 82%. The converse has happened to the interest rate in this scenario. Bonds have to be discounted in price due to the issuance of new bonds with different interest rates. The value of the bond will change dependent on this factor to fall in line with the return required by the market.

    I don't know if I have explained that well. Does that make sense.

    I'm waiting for a bitchy Martinghoul. NO.

    What do you think Trefoil. Good enough brief explanation?
     
    #17     Sep 5, 2011
  8. morganist

    morganist Guest

    Unless the link meant yield and not value. In which case the opposite would be true. It would also be very confusing.
     
    #18     Sep 5, 2011
  9. im bying all i can

    gtf out of my way
     
    #19     Sep 5, 2011
  10. morganist

    morganist Guest

    I hope you are being sarcastic.
     
    #20     Sep 5, 2011