Greek Debt

[Forever_frost]

I've been reading for quite a while about the Greek government and the EU taking the private entities that have been buying bonds and holds Greek debt and basically telling them 'fuck you, we'll pay what we feel we owe you.' Who would buy this debt when the principle is open to a 70% write down?

[cyclonescott]

My guess is we will somehow get stuck with it. Look up the urban slang for "greek" and that is what's going to happen to us.

[slow99]

Well, off the top of my head:

They could buy it to sell.
They could have a CDS against it.
They could believe that the current YTM already prices in more default/risk than will happen.

[Forever_frost]

This is actually a serious question. Every other day the Greek Government and the EU are talking about knocking down the bonds held by NGO's without cutting their own banks. Who would buy into it and why?

[slow99]

This is actually a serious question. Every other day the Greek Government and the EU are talking about knocking down the bonds held by NGO's without cutting their own banks. Who would buy into it and why?

Well, I'm going to bed now, but my previous reply was serious.

[YALE]

This is actually a serious question. Every other day the Greek Government and the EU are talking about knocking down the bonds held by NGO's without cutting their own banks. Who would buy into it and why?

The creditors in question agreed to the debt reduction terms. Pay attention.