Greetings!, Early Thursday evening private bondholders of Greek debt will be forced to make a decision. They will decide whether or not to exchange existing Greek debt for new bonds. The real decision hinges on what is an acceptable level of loss on their current investment, since they stand to lose more than 50% of the face value of the bonds they currently hold. But here comes the kicker... If the Greek government does not get a 75% acceptance it will invoke a legal clause to force all private creditors to accept the exchange. If this scenario should come into play, according to Bloomberg news, the ISDA may have to declare the restructuring coercive, not voluntary, and trigger the CDS payouts. Each time the European Union debt crisis comes to the forefront of news we are faced with this continuing saga that has, up till now, been patched and not fixed. This could be interesting. As always wishing you good trading, Executive Producer |
