Loan Sharks Rejoice – Greece 2-Year Notes at 20% !

April 20, 2011 1:30pm by

Andrew Horowitz
The Disciplined Investor
April 19, 2011

Investors in Greece celebrated today. They were awfully happy that their governmental was able to go to the open market and float 2-year notes at a yield of 20%. What a deal!!!!!

OPA!

The news was simple from Briefing.com: Greece conducted a successful 3-month Bill auction today, selling a greater-than-expected 1.625 bln euro at a yield of 4.1%, only 25 bps above the prior sale despite fears of a restructuring. With that, Greece’s ASE is leading European markets, up 1.8%.

OPA!

The cost to insure the debt of Greece from default has risen to a record high. So, either their are some very happy loan-sharks out there or there is simply no fear that bondholders will have any downside risk as long as Germany is there to support Greece.

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