Greece Prepares Bond Offering

Greece is preparing its first bond offering since the European Union agreed to provide financial assistance to help the troubled nation deal with its staggering debt load. The seven-year bonds will carry a six percent yield and are expected to be sold about 310 basis points more than the benchmark, mid-swap rate.

“This looks a lot more confident than their other recent issues, which came with a decent discount,” said Toby Nangle, director of asset allocation at Barings Investment Services Ltd. in London. “The market’s been expecting 5 billion euros, so if they come with less than that, it’s probably a signal the demand wasn’t there.”

Source: Bloomberg

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