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21 Apr 2015
Markets started to price in a Greek default – Danske Bank
FXStreet (Edinburgh) - According to CDSs, the probability of a Greek default keeps growing bigger, suggested Analysts at Danske Bank.
Key Quotes
“Greece continues to be in the limelight after especially the IMF and the ECB over the weekend tightened the rhetoric towards the country ahead of the upcoming Eurogroup meeting on 24 April”.
“Yesterday, Greece responded to the pressure as Prime Minister Alexis Tsipras ordered local governments to move their deposits to the central bank”.
“The cash-strapped Greek government is urgently in need of cash for salaries, pensions and a repayment to the IMF”.
“According to media reports the move should raise about EUR2bn in cash. However, for the market the move was seen as yet another indication of how desperate the Greek government is at the moment and that time is running out for Greece as IMF put it over the weekend”.
“Greek government bond yields rose with 3y yields now above 28%. This is the highest level since the debt restructuring in 2012 and Greek CDSs are now pricing a more than 80% probability of a default within five years”.
Key Quotes
“Greece continues to be in the limelight after especially the IMF and the ECB over the weekend tightened the rhetoric towards the country ahead of the upcoming Eurogroup meeting on 24 April”.
“Yesterday, Greece responded to the pressure as Prime Minister Alexis Tsipras ordered local governments to move their deposits to the central bank”.
“The cash-strapped Greek government is urgently in need of cash for salaries, pensions and a repayment to the IMF”.
“According to media reports the move should raise about EUR2bn in cash. However, for the market the move was seen as yet another indication of how desperate the Greek government is at the moment and that time is running out for Greece as IMF put it over the weekend”.
“Greek government bond yields rose with 3y yields now above 28%. This is the highest level since the debt restructuring in 2012 and Greek CDSs are now pricing a more than 80% probability of a default within five years”.