Those new Greek bond yields⦠What the hell was the point of this? Austerity in a weak environment will not produce growth. The Euro is probably still too damn high for them. What happens a couple years from now when Greece defaults? And why the heck would you want to own an EFSF bond ?
Funny that the new bonds are already trading at 20% of par. LOL.... How much do we want to wager that Greece can't even make it's first coupon payment?
Well since they had to borrow about 1500% what they owe on march 20, chances look good they can't make the payments in the future.
Well, they just started their meeting a couple hours ago, so we should find out shortly. They need 12 out of 15 votes in favor of a default.
Doesn't really even matter though. A CDS trigger would only amount to about $3 billion now, which is pennies compared to what it would have been a few months ago.
Ok I was wondering why the market was not reacting to a CDS trigger, why is it only on 3 bil and priced in ?
AFAIK, they haven't made a decision yet, but it shouldn't matter much anyway. The $3B has to do with the "voluntary" level of participation in the bond swap. Only about 15% held out for an insurance payment.