Euro crisis: Greek debt now ECB-eligible

19 December 2012 | By Divyang Shah, Senior IFR Strategist

After the decision by S&P to revise the sovereign credit rating of Greece to B? from selective default we now have the ECB shifting towards accepting Greek debt as eligible collateral. As always the usual haircuts will apply with the minimum credit rating threshold in collateral requirements suspended from December 21.

Divyang Shah, Senior IFR Strategist

This is a further positive for GGBs which have continued to rally to daily highs post-PSI. The bid price on the 02/23s is now above 47.00 and were trading just under 35 cent before the buybacks were announced in late November.

We continue to feel as a spec investment the GGBs remain attractive and the price action suggests that the market feels there is less risk of the bonds being PSI-ed again and that an eventual OSI will only increase the attractiveness of the debt.

Source: http://www.ifrasia.com/euro-crisis-greek-debt-now-ecb-eligible/21059585.article

orrin hatch marlon byrd charles colson humber raffi torres michael mcdonald jon jones vs rashad evans