Greek bonds pricing default? 1-year 82%

[CrazyBoy]

Quote from THE-BEAKER:

to all idiots.

if the yield on any product is 82 % and the term is 1 year

the following can be calculated.

you lend the borrower 1 million dollars.

in 1 years time on maturity they pay you back 1,820,000.00.

Sounds like a good deal, assuming they stay afloat long enough to fully service their 'obligations'.

 

[morganist]

Quote from THE-BEAKER:

to all idiots.

if the yield on any product is 82 % and the term is 1 year

the following can be calculated.

you lend the borrower 1 million dollars.

in 1 years time on maturity they pay you back 1,820,000.00.

It didn't say yield though it said value.

http://www.bloomberg.com/apps/quote?ticker=GGGB1YR:IND

Therefore I assumed it was the price of the bond not the return. Normally bonds state the price/yield then the expirary date. This stated value, it was confusing.

http://www.bloomberg.com/markets/rates-bonds/government-bonds/uk/

If you look when the price falls the yield increases. This is what I was trying to explain and why it was confusing. I will assume that value means yield in the future if what you are saying is true.

Perhaps it is a good deal too. I doubt Greece will default in the next year or two. I wouldn't risk it after that. don't buy anything that expires post 2014.

 

[the1]

A quote of 82% indicates the dire straights Greece is in. I highly doubt you'd actually be able to buy a bond at that quoted rate and if you could don't expect to be paid.

Quote from CrazyBoy:

Sounds like a good deal, assuming they stay afloat long enough to fully service their 'obligations'.

 

[Martinghoul]

Quote from the1:
A quote of 82% indicates the dire straights Greece is in. I highly doubt you'd actually be able to buy a bond at that quoted rate and if you could don't expect to be paid.

Currently, the two-way executable mkt in 1y GGB (4.1% Aug2012) is 86.899%/77.308% in terms of yield (56.50/59.50) in price). €1mil a side, but that's standard size for Greece these days.

As to whether you will get paid, it's certainly not clear.

 

[morganist]

Quote from Martinghoul:

Currently, the two-way executable mkt in 1y GGB (4.1% Aug2012) is 86.899%/77.308% in terms of yield (56.50/59.50) in price). €1mil a side, but that's standard size for Greece these days.

As to whether you will get paid, it's certainly not clear.

I think that the Germans are likely going to throw money at them to keep the EU together. The really big test is the maturity in 2014. Don't buy anything that expires durig or after 2014.

 

[ASusilovic]

Quote from Martinghoul:

You can't... I have tried to buy some pa, but no luck.

Maybe you try directly with Greek public debt management agency.

http://www.pdma.gr/(S(sgeyhk55c4mjeo552agpxm45))/ODDHX/StaticPage6.aspx?pagenb=450



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Primary Dealers participating in the domestic platform have the following responsibilities:

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