The Greek bond deal that in February I predicted would come to market was deemed a rousing success by the market. Initially Greece had planned a 2 billion euro offering for 5-year money. But there was heavy interest and Greece’s underwriters got bids for 20 billion euros, allowing Greece to increase the deal size to 3 billion. The deal came in at a coupon 4.95%.
Now let’s remember that this is an economy which has shrunk by 25% over the past 6 years, putting government debt to GDP at 176% when it would be around Portuguese and Italian levels at 130% were the economy the same size as in 2008. Restructuring will happen in Greece down the line. But right now, periphery bonds are in heavy convergence and Greece continues to be the best performer.
In China, the big economic data point was the...
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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.