Tue, Jul 29, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

60% of Greek bond holders agree to debt swap deal

Thursday, March 08, 2012

Bailey McCann, Opalesque New York - Bloomberg Businessweek is reporting that 60% of Greek bond holders have agreed to participate in the nation's debt swap deal which may help finalize the biggest sovereign restructuring in history.

Greece’s largest banks, most of the country’s pension funds, and more than 30 European banks and insurers have agreed to the offer. Bringing the total to about $163b. The goal of the debt swap plan is to reduce the amount of privately held Greek debt by more than half in order to help the country work its way out of its current debt crisis.

So far, many participants have volunteered to participate but the Greek government has indicated that it may use collective action clauses to force bond holders into the swap if the amount of volunteers falls short. The offer ends at 10 p.m. Athens time today.

Observers expect that the final tally of volunteers will be approximately 80% of bond holders. Participants are essentially agreeing to take new bonds that are 70% less in value than the current bonds that they hold. The new bonds will also have longer maturities and lower interest rates.

Those holding out from the arrangement have indicated that they may prefer the terms of a credit default swap (CDS) which would be triggered if the deal falls through. A banking leader and close observer......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing
  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Hedge fund manager Winton Capital making headway with long-only strategy[more]

    From PIonline.com: North American investors are helping Winton Capital Management Ltd. make progress — albeit slowly — toward its founder's goal of becoming a $100 billion company. The firm's ticket to quadrupling its assets under management is unlikely to be one of its scientifically designed manag

  2. Opalesque Roundtable: Success in hedge fund marketing not linked to performance, but investor appetite[more]

    Komfie Manalo, Opalesque Asia: Success in marketing a fund is not linked to the performance, but to investor appetite, to the way you can market the fund, and to how much time you can spend to raise assets, said Antoine Rolland, the CEO of incubator and seeding firm

  3. Opalesque Radio: Now is a good time to buy protection cheaply in the options market[more]

    Benedicte Gravrand, Opalesque Geneva: Investors are showing an increased interest in risk parity funds and strategies, Opalesque reported last year. Risk parity strategies have the

  4. The Big Picture: Charlemagne Capital smoothes risk out of frontier market investing with portfolio approach[more]

    Benedicte Gravrand, Opalesque Geneva: Opalesque recently talked to one of the portfolio managers of the Oaks funds, which are emerging and frontier market hedge funds focusing on equity long/short with a directional approach. They are run by

  5. Winton’s low-cost equities fund tops $1bn for first time[more]

    From FT.com: Winton, the London-based hedge fund, has increased the assets in its low-cost equities fund to more than $1bn for the first time in a sign that traditional stock managers may come under increasing pressure from computer-driven rivals. Winton, which manages about $25bn in total ass