Greece’s Third Bailout Seen in Debt With Junk Grade: Euro Credit

• So much for the 2nd bailout of Greece. The talk is now of a 3rd bailout and the 2nd bailout has barely started !
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  Greece’s Third Bailout Seen in Debt With Junk Grade: Euro Credit! 
  By Paul Dobson, http://www.bloomberg.com/ 
  Greece’s bonds and credit ratings are factoring in a third bailout for the nation that analysts and investors say will require greater concessions from its international creditors.
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  Within a week of euro-area member states giving their formal approval to a second bailout package for Greece, the International Monetary Fund said the country may require additional funding or a further debt restructuring. Pacific Investment Management Co., which runs the world’s biggest bond fund, said it remains “cautious” on euro-area government debt even after the largest-ever sovereign refinancing because the risk remains that Greece will leave the single-currency area.
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  “It’s still a very steep mountain to climb,” said Harvinder Sian, a senior fixed-income strategist at Royal Bank of Scotland Group Plc in London. The restructuring deal“doesn’t do anything to put Greece on a sustainable path,” he said. “A third bailout will become necessary.”
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  The price of Greek government bonds maturing in February 2042 that were provided as part of its debt exchange was at 21.48 cents on the euro at 8:04 a.m. London time, with yields at 15.02 percent. Standard & Poor’s said on March 15 it rated the securities CCC, its fourth rank above default, citing questionable growth prospects, a weakening political consensus to implement budget cuts, and a “still large” debt burden.
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  Default Swaps
  Sellers of credit-default swaps on Greece will have to pay as much as $2.5 billion to settle contracts triggered by the nation’s debt restructuring, an auction determined yesterday.
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  Yields on Portuguese bonds due in 2037 were at 11 percent, with the price at 41.835 cents. The securities are rated BB by S&P, six steps above the new Greek securities.
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  … for more click here!

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