Greece has a 98 percent chance of defaulting on its debt in thenext five years as Prime Minister George Papandreou fails toreassure investors his country can survive the euro-regioncrisis.
“Everyone's pricing in a pretty near-term default and I thinkit'll be a hard event,” said Peter Tchir, founder of hedge fund TFMarket Advisors in New York. “Clearly this austerity plan is notworking.”
It costs a record $5.8 million upfront and $100,000 annually toinsure $10 million of Greece's debt for five years usingcredit-default swaps, up from $5.5 million in advance on Sept. 9,according to CMA. Greek bonds plunged, sending the 10-year yield to25 percent for the first time.
Continue Reading for Free
Register and gain access to:
- Thought leadership on regulatory changes, economic trends, corporate success stories, and tactical solutions for treasurers, CFOs, risk managers, controllers, and other finance professionals
- Informative weekly newsletter featuring news, analysis, real-world cas studies, and other critical content
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the employee benefits and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
*May exclude premium content
Already have an account?
Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
