23 Jan 2012

80%+ Immediate Downside To Par For New Greek "Fresh Start" Bonds

Tyler Durden's picture
One of the funny things about the proposed Greek debt exchange offer is that, at least according to most recent fluid rumor, the cash coupon ceiling on the "post reorg" bonds, as dictated by the European finance ministers, will be 4% (hedge funds want more). So let's assume 3.5% for argument's sake. Perhaps the fact that the cash coupon of the US 30 Year note is roughly the same is somewhat concerning, because call us skeptical but Greek credit quality may be just a little worse than that of America - something which should be obvious to most. Except for European leaders of course. But that's fine - one can define cash coupons to be anything. After all the only thing that matters for bonds is yield, which Greece appears to have forgotten is determined by coupon and price. So since the Greek Debt/GDP will still be over 120% according to another set of rumors (after all, only a small portion of the country's debt is really getting impaired), it is 100% safe to say that in 30 years Greece will still go bankrupt. So let's say it deserves a comparable yield to its current 30 year bonds, which are priced to yield about 23%. We are being a little generous and estimate the fresh start bonds will yield 20% post break. Which means that according to a generic bond yield calc, the price on the fresh start bonds post reorg will be... 17.9 cents of par, or immediate losses of over 80% the second these bonds break for trading from par.

Anonymous to take down Facebook in Operation Global Blackout "They should have expected us!"

Following a massive attack waged Thursday on several government and entertainment industry websites, hacktivists with Anonymous continued their assault over the weekend, momentarily taking CBS.com offline.

The next target very well might be Facebook.

Electronic Voting Machines Accidentally Leak NEW WORLD ORDER Choice Candidate

Obviously, this video is satire, but voter fraud in Iowa was actually confirmed! Please read the following article and spread it aggressively:

Pro-Gaddafi forces capture Bani Walid, 5 NTC troops killed - report

Fighters loyal to late Libyan leader Muammar Gaddafi have clashed with (so called) revolutionary forces in the former-regime stronghold of Bani Walid, taking control of the city in the process.

Iran 'definitely' closing Strait of Hormuz over EU oil embargo

Tensions in the Gulf could reach a breaking point as a senior Iranian official said Iran would definitely” close the Strait of Hormuz if an EU oil embargo disrupted the export of crude oil

Currency Wars - Iran Banned From Trading Gold and Silver

Tyler Durden's picture
Reuters report that the EU has agreed to freeze the assets of the Iranian central bank and ban all trade in gold and other precious metals with the Iranian Central Bank and other public bodies in Iran. According to IMF data, at the last official count (in 1996), Iran had reserves of just over 168 tonnes of gold. The FT reported in March 2011 that Iran has bought large amounts of bullion on the international market to diversify away from the dollar, citing a senior Bank of England official. Currency wars continue and are deepening. Many Asian markets are closed for the Lunar New Year holiday which has led to lower volumes. Of note was there was an unusual burst of gold futures buying on the TOCOM in Japan, which has helped the cash market to breach resistance at $1,666 an ounce.  Investors are also waiting for euro zone finance ministers to decide the terms of a Greek debt restructuring later today.  This would be the second bailout package for Greece.


Classic Mad Magazine is my how to manual. “Destroy the image and you will destroy the enemy.” Shaolin Monk in Enter the Dragon.

'Zionist Bicom behind UK Press TV ban'

The Zionist Britain Israel Communications & Research Centre (Bicom) has collaborated with the state-controlled British Office of Communications (Ofcom) to ban the alternative English-language channel Press TV in the UK, a political analyst says.“With anti-Iran sabotage activities high on its agenda, Bicom has worked closely with Ofcom towards eliminating a critical voice: Press TV,” Ismail Salami, Iranian author and Middle East expert, wrote in an article published on Press TV on Sunday. Ofcom revoked Press TV's license and removed the channel from the Sky platform on January 20 for what it claimed to be the news network's breach of the Communications Act. The British media regulator also served Press TV's London office with an order to pay a 100,000-pound fine. “An office with intimate ties to the [British] Royal Family, Ofcom has issued the verdict under the sway of some influential parties in the government and the Bicom firm to boot,” Salami added.

Davos elites to seek reforms of ‘outdated’ capitalism

Economic and political elites meeting this week at the Swiss resort of Davos will be asked to urgently find ways to reform a capitalist system that has been described as outdated and crumbling.”
We have a general morality gap, we are over-leveraged, we have neglected to invest in the future, we have undermined social coherence, and we are in danger of completely losing the confidence of future generations,” said Klaus Schwab, host and founder of the annual World Economic Forum.
“Solving problems in the context of outdated and crumbling models will only dig us deeper into the hole.”

"We are in an era of profound change that urgently requires new ways of thinking instead of more business-as-usual," the 73-year-old said, adding that "capitalism in its current form, has no place in the world around us."

"A Violation Of Trust"

Fellow 9/11 Truth Seekers, I have great news for you ... We’re making “our” movie…  And by “our” ... I mean the 9/11 Truth Movement’s movie.

A Violation Of Trust begins filming in the new year, so it will be available for its Worldwide TV Premiere on the night of 9/11/12 – potentially reaching hundreds of millions of people all on the same night!!!

Talk about a "Weapon of Mass Instruction."

Looking Back On A Century Of The Fed's BS

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Submitted by Tyler Durden: Guest post Submitted by Thomas Gresham of Gresham's LawAfter almost a century of the centrally planned dollar we’re delighted to present a timeline of the most amusingly disturbing speeches delivered by the Federal Reserve & Co.