Markit and Creditex announced the results of a Credit Event Auction conducted to facilitate settlement of credit default swap (CDS) trades referencing The Hellenic Republic's sovereign debt. The final price of The Hellenic Republic bonds for the purpose of settling CDS transactions was determined to be 21.5%. Market participants who bought protection against a Hellenic Republic default will receive the face value of their bonds in exchange for a payment of 21.5% of face value to protection sellers.
Greece’s new long-term bonds have begun trading at north of 20 percent yields against a Coupon payments of 2 percent on the new bonds until 2015. In what is probably an illiquid market, these yields suggest that markets expect a second Greek default very soon.
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