Greece 5 year CDS..about to blow up

Greece 5y CDS

1,441.290 USD

That only tells one thing, people are purchasing these like hot cakes!

Originally posted by DannyboyUK
Greece 5y CDS

1,441.290 USD

That only tells one thing, people are purchasing these like hot cakes!

Well, thats quite the spike if I ever did see one. But, what does it mean? Wait... CDS for an entire country!?!? And they went up like that?

Then again it was going up for a month and a half, so not really surprising. Who would buy CDS with Greece being in the trouble that its in

Anyone know what this means?

Doesn't it mean that all the Fat Money Pigs are squealing and looking at ways in which to ''try'' and protect their investments in the enevitable default of Greece......

Everyone with a brain knows that Greece simply cannot afford or has a hope in hell of recovering itself so it will go down the pan ....... but these Fat Money Pigs, who probably can't see past their snouts think that a CDS is an insurance that will save them....funny thing is that there is no money left................

Time for the slaughter house Fat Money Pigs !!

PDUK

being greek I hope Greece pulls through this.
Its truly an amazing country, and the history there is outstanding.

According to an articale by the german newspaper the spiegel, greece and europe are in serious trouble because it can't meet it's financial targets for a new bailout.

source: Zerohedge

hmmm..just came across this not sure if I believe it.

Originally posted by DannyboyUK
Greece 5y CDS

1,441.290 USD

That only tells one thing, people are purchasing these like hot cakes!

No joke DannyboyUK, and the purchase of these derivatives not only drives up risk premiums on the credit default swaps.....it also puts upward pressure on interest rates, further damaging the reference entity's ability to finance it's debt burden.

So here's the sardonic twist in this situation. Last year, the single largest speculator in Greek CDS was none other than:

TT bet against Greece

State-controlled Hellenic Post Bank (TT) spent nearly 1 billion euros last year to secure its positions against the possible bankruptcy of the Greek government, according to documents seen by Kathimerini.

In August, the bank bought credit default swaps (CDS) – a form of insurance on financial instruments – worth 950 million euros when the spread on the Greek five-year bond over the German Bund was at 135 basis points.

CDS products allow investors to purchase protection against the default of debt issued by governments, hedging existing positions.

TT’s management, which changed after the Socialists took power in October, sold the CDS when the spread was at 235 basis points in December, earning a profit of some 35 million euros, the documents show.

The bank’s position in CDS protected the lender from its exposure in Greek bonds but also provided it with an opportunity to play a part in the global CDS market worth some 8 billion dollars last year. - Full Text

Hellenic Post Bank's 950MM bet against Greece, represented approx 15% of the market.

As they say: You can't make this stuff up!

GL

Related: Greek Irony

TPTB controlling the media managed to bury the story about the Greek austerity measures failing until after the markets closed in the USA on the Friday before a Memorial Day long weekend.

By the time the markets have time to ingest this news, and repoen on Tuesday, my guess is that this failure will have minimal impact, when it should have led to a massive fall in international markets around the world.