Investors Say No to Greek Bond Restructuring
Investors holding Greek sovereign debt issued under foreign laws and denominated in dollars, euros, Swiss francs and yen said no to a Greek restructuring plan, leaving the country to find another way through its debt maze as it seeks to avoid outright financial collapse.
When the financial system faces a major bankruptcy, one that is large enough to threaten its health, it often makes sense to buy time. Regulators, central bankers, multilateral lenders and governments.
Greece Gets 95% Participation in Debt Swap
Greek Finance Minister Evangelos Venizelos was quoted saying, “The debt-swap results show that international markets see the prospects the Greek economy has to regain a sustainable fiscal situation.”
Greek Debt Swap Success Called Likely
Enough holders of Greek sovereign debt have now signed on to the debt swap deal that is a prerequisite for a second bailout that success seems likely. However, there is still a chance that collective action clauses may be triggered.
Greek 1-Year Bond Hits 1,000%
Investors who would drool at the chance to turn a $1,000 investment into $10,000 in just a year are likely in no better position than the Greek mythological figure Tantalus unable to grasp the low-hanging fruit just out of his reach.
Greek-German Relations Strained in Debt Negotiations
Germany's get-tough attitude toward Greece, echoed by Austria, Finland and the Netherlands, has angered Greek officials who say they have done everything they were asked to do in order to be granted a second bailout by the troika of the European Union, International Monetary Fund and European Central Bank.
ECB Likely to Wait for Debt Deal on Greece
Any concessions the European Central Bank may choose to make on Greece’s sovereign debt are likely to remain unknown until Athens comes to some sort of agreement with its private debt holders.
Q4 Earnings: Citi Misses Earnings on Lower Results
At Citigroup, loans improved, but sales and profits–including those from its Morgan Stanley Smith Barney joint venture–declined year over year.
Hedge Funds Look to Greek Bonds for Profit
London- and New York-based hedge funds are among those that hold Greek bonds and are resisting haircuts advocated by the Greek government to help the country avoid default.
Gloomy Christmas in the Eurozone
Austerity measures have hit hard in the eurozone nations struggling under the burden of huge debts.