Greek bonds trade at distressed levels

12-Mar (Financial Times) — Greece’s new bonds, issued after its €206bn debt exchange, started trading on Monday at distressed levels, indicating that investors fear another restructuring is probable.

A series of 20 bonds with maturities of 11 to 30 years began trading and were quoted with prices of between 23 and 26.5 cents in the euro, a slight rise from Friday’s grey market.

Greece’s yield curve is still inverted with the 11-year bond yielding about 18.1 per cent and the 30-year bond 13.4 per cent, meaning investors are braced for more distress.

The new yields are the highest in the eurozone, ahead of Portugal, the country considered most likely to follow Greece in needing a second bailout.

[source]

PG View: As I’ve been saying for weeks, the likelihood of Greece making good on the new bonds isn’t really any better. That makes the PSI “volunteers” appear even more the patsies, unless of course there was coercion from the get-go…