Greece Is Planning a EU30 Billion Debt-Swap Exercise As Greek 10Y Yield Hits Lowest Level Since 2009 (Unemployment Still Over 20%)

This is a syndicated repost courtesy of Snake Hole Lounge. To view original, click here. Reposted with permission.
Now that the drama over The Fed Chair selection is over, we can focus of other earthly matters, like Greece sovereign debt restructuring.
(Bloomberg) – The Greek government is planning an unprecedented debt swap worth 29.7 billion euros ($34.5 billion) aimed at boosting the liquidity of its paper and easing the sale of new bonds in the future.
Under a project that could be launched in mid November, the government plans to swap 20 bonds issued after a restructuring of Greek debt held by private investors in 2012 with as many as five new fixed-coupon bonds, according to two senior bankers with knowledge of the swap plan. The bank officials requested anonymity as the plan has yet to be made public. The maturities of the new bonds may be the same as for the existing notes, which range from 2023 to 2042.
‘The move aims to address the current illiquidity of the Greek bond market,’ according to analysts at Pantelakis Securities SA in Athens. It will also ‘establish a decent yield curve, thus facilitating the country’s return to public debt markets.’

This post was published at Wall Street Examiner on November 2, 2017.


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