Boom goes the dynamite. Freefalling across the board
Did you just make that up??
Nope. *GREECE SOVEREIGN CREDIT RATINGS CUT TO JUNK BY S&P :1004Z GA *GREECE SOVEREIGN CREDIT RATINGS CUT TO JUNK BY S&P :1004Z GA *GREECE RATED BB+/NEGATIVE/B AT S&P
Wow, thanks for that. I rely on the internet now as I have no BB machine in my f*"£%^* office… I will get the popcorn and watch the show.
I need to figure out if I can buy Greek bonds through scottrade. I seriously doubt it, but I’d like to.
2-yr greek sov debt was yielding 15% earlier today. This was before S&P knocked em down three notches. Anyone who thought that was a good deal is cursing themselves now.
I don’t have BBG here… I don’t normally track bond yields… can anyone recommend a site where I can look at Greek sovereign yields over the last year or so?
Greek May 19th bonds selling at 30% YTM http://www.zerohedge.com/article/greek-may-19-maturing-bonds-being-sold-30-ytm WOW…
Sweep the Leg Wrote: ------------------------------------------------------- > I need to figure out if I can buy Greek bonds > through scottrade. I seriously doubt it, but I’d > like to. Why?
accountant23 Wrote: ------------------------------------------------------- > Sweep the Leg Wrote: > -------------------------------------------------- > ----- > > I need to figure out if I can buy Greek bonds > > through scottrade. I seriously doubt it, but > I’d > > like to. > > > > Why? Sweep - I’ll make it easy, you send me 100,000 and I’ll send you back 30,000. I will even overnight it if you want, that’ll be much quicker than waiting for the Greek debt restructure if you buy any of the bonds.
Awesome. I’m going on vacation to Athens in August. Hopefully just in time for nation wide strikes and riots.
accountant23 Wrote: ------------------------------------------------------- > Sweep the Leg Wrote: > -------------------------------------------------- > ----- > > I need to figure out if I can buy Greek bonds > > through scottrade. I seriously doubt it, but > I’d > > like to. > > > > Why? Primarily because I don’t believe they’ll default on their debt. Also, the bond market almost always over-reacts to a downgrade, particularly when the move is from investment grade to junk. And, just to spite the rating agencies.
didnt IMF back them up…
didnt IMF backed them up…
revenge for big fat greek wedding movie, karma is a b
Doesn’t mean anything. The only issue yielding 30% (now 40.1%) is the one for maturity 5/19/10. Your HPR on that is more like 2.0%. The next one maturing on 5/31 is yielding 13%.
Doesn’t mean much. The only issue yielding 30% (now 40.1%) is the one for maturity 5/19/10. Your HPR on that is more like 2.0%. The next one maturing on 5/31 is yielding 13%.
Sweep the Leg Wrote: ------------------------------------------------------- > accountant23 Wrote: > -------------------------------------------------- > ----- > > Sweep the Leg Wrote: > > > -------------------------------------------------- > > > ----- > > > I need to figure out if I can buy Greek bonds > > > through scottrade. I seriously doubt it, but > > I’d > > > like to. > > > > > > > > Why? > Primarily because I don’t believe they’ll default > on their debt. Also, the bond market almost > always over-reacts to a downgrade, particularly > when the move is from investment grade to junk. > And, just to spite the rating agencies. I suspect that there are legitimate reasons for the market to react when a bond moves from investment grade to non-investment grade. For example, there may be portfolios that require (via their prospectus), that X% of their portfolio’s invested in investment grade bonds. So when they have a holding in a security that’s been downgraded, they must sell it off. Not sure if that factor is in play here or not, but seems like a reasonable explanation.
That’s a completely legitimate reason, but that’s not selling on fundamentals. In fact, it’s a horrible policy. PMs are forced to sell debt at the worst possible time. Ratings are borderline meaningless anyway. For example, a BB municipal bond is 100 times less likely to default than a AA corporate bond. Sovereign debt isn’t nearly as misleading, but still tricky. Over a 10 year period ending 2007 about 1/3 of corporate bonds rated as junk defaulted compared to about 1/5 of sovereign junk bonds. And, off all sovereign debt that defaulted the recovery rates were still about 30 cents on the dollar. All I’m saying is, if you feel like taking a bit of a gamble, then Greek bonds aren’t as bad of a bet as they may seem. The downside isn’t as bad as many people think, and the upside is huge (for bonds anyway). Distressed debt is the only fun part of fixed income.