Greece Debt Statistics: 75 Percent Haircut On Greek Bonds
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