Comments on: How lucky are Greece’s bondholders?

By: Tseko

Tseko — Fri, 09 Mar 2012 13:32:44 +0000

I read the piece in the FT and agree that it was largely missing the point. Greece is effectively using bondholders and the EU to finance its restructuring at a low cost. He is right that there is a transfer of debt to the public sector but this is only after current bondholders have essentially taken up most of the losses, so aside from the Greek government, which is saving billions of euros in debt costs, it is hardly to see any other winners. But the country is now rated D, which will rule out any provate sector financing (bonds or loans or funding swaps) at least for the next couple of years. The only thing that matters is if the CDS will be triggred, otherwise everyone and their brother will start dumbing their sovereign exposure.

By: JayCM

JayCM — Fri, 09 Mar 2012 01:02:54 +0000

Do you really think bonds issued under British law have more protection than Greek law? Maybe slightly, but the fact remains that no British court can foreclose on Greece. If Greece declares default, what good does the British connection really do? If the Greek law bondholders eventually get Drachma, the British law bondholders might not get even that if they annoy the Greek government with suits in British courts.

By: Tom_Murphy

Tom_Murphy — Thu, 08 Mar 2012 21:07:10 +0000

“But Felix, the pensioners are getting the same deal.

“Majority of pension funds favour bond swap but six rule decide against””

I believe that by pensioners Felix means the retired Greek public servants who are getting pensions as opposed to Managers of Pension Funds.

But I have been wrong before.

By: a.soffronow

a.soffronow — Thu, 08 Mar 2012 17:13:05 +0000

But Felix, the pensioners are getting the same deal.

“Majority of pension funds favour bond swap but six rule decide against”

http://online.wsj.com/article/BT-CO-2012 0308-706624.html