These tend to be the foreign denominated bonds
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cheap Canada Goose LONDON buy canada goose jacket (IFR) Distressed Canada Goose Parka debt funds are building up blocks of Greek government bonds with an eye to holding out against, and ultimately profiting from, a restructuring of canada goose black friday sale Greece debt. cheap Canada Goose
buy canada goose jacket So called funds have had success in holding out against past sovereign restructurings, including those carried out by Argentina and Peru. Now, as negotiations have intensified in recent weeks over the private sector offer to restructure Greek debt voluntarily, some funds are once again preparing to cash Canada Goose https://www.canadagoosesale.info online in on a major sovereign debt exchange. buy canada goose jacket
canada goose coats have definitely been some distressed funds canada goose uk shop expressing interest in buying significant portfolios Canada Goose Outlet of Greek bonds at a high discount. It seems for cheap Canada Goose now there is not much trading, though, because the bid price is low compared with the Canada Goose Jackets price where sellers canada goose uk outlet would be willing to get rid of their position, said a head of rates trading at cheap canada goose uk a European bank. canada goose coats
canada goose Funds thought to be active uk canada goose outlet in scooping up GGBs include Elliot Associates which successfully held out on Argentina and Peru sovereign restructurings and Fir Tree Partners, which has become embroiled in a dispute over restructuring of canadian goose jacket Irish bank debt. Neither firm responded to requests for comment. canada goose
canada goose clearance Market makers said GGB trades that had gone through had often been executed in periods when the market became particularly distressed and prices dipped. canada www.canadagoosesale.info goose clearance
Canada Goose Outlet seen a lot of buying in Greek bonds in the past few weeks. When stuff canada goose clearance sale starts trading at 30 cents on the euro, people are looking to get Canada Goose Coats On Sale involved. The market is very illiquid though, so it takes time to canada goose store build up a large stake, said a head of European rates at a major bank. Canada Goose Outlet
canada goose black friday sale BLOCKING STAKE Traders declined to reveal exactly which series of GGBs were being targeted by potential hold outs, but certain issues look likely to have been targeted. If a Greek restructuring followed the pattern buy canada goose jacket cheap of the recent restructuring of Irish bank debt and a coercive tender was put forward, 75 percent of holders of any particular series of bonds would need to accept the haircut in order to bind all holders to the agreement. canada goose black friday sale
Canada Goose sale If an investor wanted to block a tender, it Canada Goose sale would therefore look to accumulate more canada goose coats on sale than 25 percent of a given series of bonds, according to Steven Friel, a litigator with law firm Brown Rudnick, which specializes in representing funds in these types of cases and has been speaking to a number of parties interested in Greece. Canada Goose sale
Canada Goose online It would also make sense for funds to target bonds governed by English law a trend that some traders have observed. These tend to be the foreign denominated bonds, which make up around 10 percent of Greece outstanding debt. Canada Goose online
Canada Goose Jackets bonds are governed by Greek law, it going to canada goose coats be easier for Greek legislature to pass a law that simply amends the bonds, which would be much more difficult to do for English law governed bonds, said Friel. Canada Goose Jackets
Canada Goose Parka English law governed GGBs have been trading at a premium in the market for a while now as a result of this apparent advantage; for instance, a canada goose clearance June 2013 US dollar denominated GGB trades 15 cents on the euro higher than comparable tenors of domestic GGBs. Foreign denominated bonds Canada Goose Online also tend to be smaller issues, potentially making it easier for funds to build a blocking stake in them. Canada Goose Parka
canada goose clearance sale been a view for a while now canada goose uk black friday that English law bonds trade differently to Greek law bonds as they be judged upon canada goose factory sale in UK courts, said another senior rates trader at a European bank. canada goose clearance sale
canadian goose jacket WIDE POOL OF SELLERS There is potentially a wide pool of sellers of GGBs, and not only long only canada goose investors such as asset managers. Following the original so called PSI agreement in July, there was thought to be some pressure on European banks which had to disclose their holdings to regulators not to sell their Greek bonds. canadian goose jacket
canada goose coats on sale One person close to the current PSI negotiations said the lines are still being drawn and noted questions remained over how prominent a role regulators would take this time round. The head of rates trading indicated banks may now be more tempted to sell their GGB holdings to avoid taking further potential mark downs on Greek debt. canada goose coats on sale
be honest, the pressure for banks to get rid of GGBs is very strong, because shareholders don exactly thank you for holding these positions, he said.
canada goose store In the meantime, uk canada goose distressed debt funds are not the only ones playing on the Greek situation, with many other traders looking to turn a profit out of it. canada goose store
buy canada goose jacket cheap holding March 2012 GGBs and shorting banks, because if Greece defaults messily, then banks will struggle. It really a bet on how long this takes if the PSI is not in place before March then the bonds could be paid in full, said one hedge fund trader buy canada goose jacket cheap.