Monday, October 24, 2011

Report: Negotiators ask Greek debt holders to take 60% cut in face value of bonds

by Bill McBride on 10/24/2011 11:12:00 PM

From the Financial Times: Hard line adopted on Greek debt loss

European negotiators have asked Greek debt holders to accept a 60 per cent cut in the face value of their bonds ...
excerpt with permission
The previous agreement was for a 21% cut in the net present value, not the face value. This is a 60% cut in the face value, and according to the Financial Times, this is about a 75% to 80% reduction in NPV.

The Greek 2 year yield is up to 78%. The Greek 1 year yield is at 183%.

The Portuguese 2 year yield is up to 18% and the Irish 2 year yield is up to 8.7%.

The Spanish 10 year yield is at 5.55% and the Italian 10 year yield is at 5.95%.

The Belgian 10 year yield is at 4.45% and the French 10 year yield is up to 3.3%.