Is A Big US Bank Betting On A Greek Default In 11 Days?

Bankingnews.gr has disclosed something interesting. According to the Greek website, an account, allegedly a large US bank, has been dumping, in what it classified as "panic selling", its holdings of a 10 Year GGB maturing on April 20, 2010, or in 11 days. What is unclear is whether the bank has been trading for its own account or for a client. What is clear, is that the seller is certainly not too convinced that the bond will see a repayment of principal when it matures, in other words believes that Greece will go bankrupt before April 20^th.

From the source:

It is clear that this move is panic.
The seller believes that in the next 11 days Greece will go bankrupt, there will be default or anything else to sell a bond expires in 11 days.
Who sold under a sign is a large U.S. bank.
The only thing that has not been established is sold on behalf of a client or on their own behalf?
Both are negative developments ...

We did some snooping of our own and uncovered one bond issue that is due on April 20, however it is a 5 Year, not a 10 Year as bankingnews.gr claims. The 5 Year bond in question is a €8.22 billion in size, issued at 100.037, and was trading at 99.9008x99.9058.

continue HERE

Posted by Mr Thx Sunday, April 11, 2010