Greece Debt Statistics: 75 Percent Haircut On Greek Bonds

December 19, 2011 4:18 am

We spotted this today:

” What’s equally important is the size of the coupon that the new bonds carry. And Greece has reportedly decided that if it’s going to restructure, it’s going to restructure right — by slashing the income associated with the bonds to such a low level that when they start trading, each $1 in old bonds is going to be worth just 25 cents on the open market.

This is called the “NPV haircut” — and if you’re a holder of Greek bonds, it’s the main number that you care about, since it determines how much your new bonds are worth. ”

Statistics Source: Reuters

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