Greek CDS are back in trading

Trading in credit-default swaps tied to Greek government bonds has been reported by the Depository Trust & Clearing Corp for the first time since the country undertook the biggest sovereign debt restructuring more than two years ago.

There were 74 trades covering a gross $165 million of Greek debt last week, according to the DTCC, which runs a central registry for the market and publishes data for the 1,000 most-traded entities.

A total of 292 contracts protecting a net $505 million of bonds are now outstanding, the data show.

Previous contracts insuring about $3 billion were settled in March 2012, when Greece forced investors to exchange their bonds at a loss as part of the debt restructuring.

Investors started buying protection again after the nation returned to the international bond market in April after a four-year exile.

“It’s a step towards more normal markets in Greece,” said Athanasios Vamvakidis, the head of Group of 10 currency strategy at Bank of America Corp in London. “Having an instrument to hedge will help Greece increase market access.” [Bloomberg]