Greek Bond Yields Explode as 1 year moves 100 bps to over 752% in One Day

[rondaben]

Found this:

About an hour ago, Fitch downgraded its credit rating on Greece from CCC to C - the level that indicates default.

It said that the debt-swap deal will constitute a "distressed debt exchange". Once the swap is completed, it will lower Greece's rating to RD (for restrictive default), and then re-rate the country "at a level consistent with the agency's assessment of its post-default structure and credit profile".


Whatever that mouthful actually means.

You should be able to find the statement here somewhere:

http://www.fitchratings.com/web/en/d...fitch-home.jsp


Here:
http://www.zerohedge.com/news/breath...omment-2184233

It means they are getting ducks in line to declare Greece as in default, and that will trigger a default for the purposes of credit derivatives.

[CaptSkip]

It means they are getting ducks in line to declare Greece as in default, and that will trigger a default for the purposes of credit derivatives.

Well, you'd think so...in the real world.

But ever since CME and MF Global penned some all-new and creatively illegal rules...as did the ECB by magically placing the ECB only in first position on Greek Bonds in the event of a default...

...I've concluded we now live here:



...so I won't hold my breath now for real and legal.

[Plainsman]

Well heck they sound like a great investment! I am sure that someones retirment is buying into them!
I dont watch tv but surely they are touting them as the'bedrock of financial security' buy Greek bonds today!

[bw]

I dont watch tv but surely they are touting them as the'bedrock of financial security' buy Greek bonds today!

Jim Cramer.

[TomNTam]

It cannot trigger a default for the purpose of credit derivatives, as that would put GS and JPMorgan on the hook to payout, and therefore, become insolvent. Do you really see that happening? To me, that just seems impossible.

[rondaben]

It cannot trigger a default for the purpose of credit derivatives, as that would put GS and JPMorgan on the hook to payout, and therefore, become insolvent. Do you really see that happening? To me, that just seems impossible.

Kind of like the big 5 are on the hook for robosigning?

Of course, they write down principal, get to take that as a writeoff, then are reimbursed through HAMP and get to count that amount towards the 25 billion they owe. If you ask me, it seems like they get their money, a tax writeoff and immunity from class actions and the only people that pay are the taxpayers.

The exact same thing will happen here.

[Chaplain Chuck]

Of course, they write down principal, get to take that as a writeoff, then are reimbursed through HAMP and get to count that amount towards the 25 billion they owe. If you ask me, it seems like they get their money, a tax writeoff and immunity from class actions and the only people that pay are the taxpayers.

The exact same thing will happen here.

Indeed. I can see this happening if Obama is elected to another term. He has given away our future and our children's future. Now he will work on the next 5 generations futures as he lines the pockets of his friends (as well as lining his own nest)

[moestooge]

Greece today, the rest of the world in the near future. Keep prepping, folks.

[rondaben]

http://www.zerohedge.com/news/scanda...european-banks

That was quick. Here is your bailout mechanism for those poor banks.

[bw]

that will trigger a default for the purposes of credit derivatives.

The ISDA can keep its hands over its eyes longer than anyone ever thought possible. We don't yet know what it will take to make them see.