Greece storms back into international bond markets


Greece is reportedly raising €3B ($4.15B) in five-year bonds in the country's first auction of long-term paper since it was initially bailed out in 2010.

Demand was for €20B ($27.7B) of notes, helping to push the yield down to just 4.95% from an initial pricing of 5-5.25%.

The bond sale comes two years after Greece defaulted on its debt and suffered the biggest sovereign-debt restructuring in history.

Back in the real world of the debilitated Greek economy, the country remains mired in deflation. CPI fell 1.3% on year in March after dropping 1.1% in February, with consensus -1.1%. Unemployment declined to 26.7% in January from 27.2% in December.

ETF: GREK

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Comments (3)
  • cfetrader
    , contributor
    Comments (1225) | Send Message
     
    Two are the most promising stocks in Greece and they happen to be banks, i.e. ALPHA BANK and PIRAEUS BANK, where large trading volumes ensure that one can easily buy and sell stocks. Even if global market sentiment turns bearish, then their downside potential is much less than their upside from a long-term perspective.

     

    As far as the rest of the Greek equities is concerned, I would only consider OTE (Telecoms), EXAE (Athens Stock Exchange), TENERGY (Wind Power) and MYTIL (Metals), after they have undergone a significant correction. Personally I did buy the above in June 2012 and sold them in January 2014 at a considerable profit.
    10 Apr 2014, 05:48 AM Reply Like
  • User 353732
    , contributor
    Comments (5166) | Send Message
     
    The lesson of financial history is that bond investors have very short memories and no lessons remain learned for more than a few years.
    10 Apr 2014, 08:01 AM Reply Like
  • RicJensen
    , contributor
    Comments (3855) | Send Message
     
    You have to have cahones to get into these Bonds. I would have thought they would still be over 7%. But I guess when they got bailed out everyone thinks that they would get help again if needed. I'm sure Germany would be happy to help.
    10 Apr 2014, 10:28 AM Reply Like
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