Thursday, April 8, 2010

Greek Debt Continues Under Extreme Pressure

It's pretty ugly. The yield on the 10-year Greek note s has jumped another  25 basis points to 7.38 per cent. The spread over Bunds is now 428 basis points.

The cost of insuring Greek debt against default, as measured via credit default swaps, rose more than 10 per cent to a record high of 448.5 basis points. The yield on 2-year bonds jumped 88 basis points to 7.44 per cent.

The question really has to be who is buying this debt at these rates? Are they expecting a bailout when Greece defaults down the road?

1 comment:

  1. Wenzel,

    Are you aware of any ETFs or other "easy to use" resources that collect either all the PIIGS or individual PIIGS nations' sovereign debt or leading equities indexes into a tight package that can be shorted?

    This seems like such an obvious play and I've been searching all over the net for PIIGS sovereign debt ETFs and/or PIIGS equity index ETFs to short and not only can I not find anyone selling or offering such a product but I don't even find much discussion of people looking for the same thing as I am. I have found a few eurozone ETFs but there is perhaps too much German, French and sometimes even British weighting to make them usable for this strategy.

    Any ideas of specific products or a general place to look/inquire? I'm scratching my head a bit on this one.