Wednesday October 1, 2014 Search
Weather | Athens
26o C
17o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Greece said to hire banks for 3-year note sale after bond rally

Neal Armstrong & Leo Laikola

Greece hired banks to sell three-year debt, accessing international markets for the second time in three months, after European Central Bank stimulus measures fueled a rally in bonds across the euro area this year.

Bank of America Merrill Lynch, Citigroup Inc., Deutsche Bank AG, Goldman Sachs Group Inc. and JPMorgan Chase & Co. will sell the notes on behalf of the Mediterranean nation, according to a person familiar with the matter, who asked not to be identified because theyíre not authorized to speak about it. The transaction will be priced in the near future, the person said.

Greece returned to bond markets for the first time since 2010 in April, when it sold 3 billion euros ($4.1 billion) of five-year securities via banks. Orders for that sale exceeded 20 billion euros, the government said at the time.

Itís a renaissance for the nation that sparked the euro areaís debt crisis almost five years ago when it said its deficit was bigger than previously thought. Greece was locked out of international bond markets after a surge in yields and has been kept afloat since then with international bailout loans. Ireland and Portugal were among nations that also required rescues as the financial woes spread.

Now, capital markets are thawing for even those countries that had been frozen out during the crisis. Demand for the euro regionís bonds surged since ECB President Mario Draghi pledged in 2012 to do whatever was needed to save the euro. The rally was boosted this year by stimulus measures introduced on June 5, including charging banks to park cash overnight with the central bank and targeted cheap loans.

Portugal last month held its first auction since exiting its three-year international rescue program, and Ireland has resumed regular auctions. Cyprus also held a bond sale in June, helping consign the debt crisis to history.

European governments frequently hire banks to help them sell a new, longer-dated security by broadening potential demand for the debt.

Greek securities returned 29 percent in the year through yesterday, the most among sovereign-debt markets tracked by the Bloomberg World Bond Indexes.

The average yield to maturity on debt from Greece, Ireland, Italy, Portugal and Spain fell to 1.91 percent last month, the lowest since at least 1998, according to Bank of America Merrill Lynch indexes. A measure of all euro-area government bonds reached a record-low yield of 1.29 percent Tuesday. [Bloomberg]

ekathimerini.com , Wednesday Jul 9, 2014 (15:49)  
NBG Pangaea eyes listing on foreign bourse, huge portfolio
Out-of-control unpaid bills bring PPC to its knees
Banks feel optimistic ahead of stress test results
S&P upgrades OTEís credit rating and revises outlook
Would-be commissioner Avramopoulos sets out priorities on migration
Dimitris Avramopoulos, the EU commissioner-designate for migration and home affairs, on Tuesday sought to set out his priorities for a post regarded as more crucial than ever amid increasing...
Money ring sent†4.5 mln abroad
Two Afghan employees at a currency exchange bureau in central Athens and a Greek alleged to own the establishment were detained on Tuesday in connection to the alleged illegal transfer of mo...
Inside News
SOCCER
All team sports suspended next weekend in memory of dead fan
The government announced on Monday the suspension of all team sports events in Greece scheduled for next weekend, October 4 and 5, in the memory of the Ethnikos Piraeus fan who died a few ho...
SOCCER
Karamanos punishes Michel for deeming him surplus
Atromitos forced Olympiakosís first loss this season in all competitions on Saturday to allow PAOK to go alone on top of the Super League table on Sunday. Odds-on title favorite Olympiakos l...
Inside Sports
COMMENTARY
Next-day jitters
It is usual for Greek governments, whether one-party or coalitions (which are normally loath to actually work together), to claim that their only real challenge is dealing with the countryís...
EDITORIAL
No sweet debt deals
The lionís share of Greeceís debt is held by European Union member states and the International Monetary Fund. A writedown of the European part of the debt would require the approval of the ...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
†RECENT NEWS
1. NBG Pangaea eyes listing on foreign bourse, huge portfolio
2. Out-of-control unpaid bills bring PPC to its knees
3. Banks feel optimistic ahead of stress test results
4. S&P upgrades OTEís credit rating and revises outlook
5. Athens tourism fuels hotel occupancy
6. Would-be commissioner Avramopoulos sets out priorities on migration
more news
Today
This Week
1. Next-day jitters
2. Roma camp off Mesogeion Avenue set for demolition amid reactions
3. No sweet debt deals
4. Greek unemployment dips to 27 pct in June, but still highest in EU
5. Commissioner-designate Avramopoulos to face three-hour interview on EU's migration portfolio
6. Roma camp evacuation postponed; flow resumes on Mesogeion Avenue
Today
This Week
1. Greece may opt for unusual president to avoid snap polls, Venizelos says
2. Woman allegedly buried alive by accident in northern Greece
3. Salaries in Greece continue to slide, dipping 1.4 pct in Q2
4. Should you bet with Kissinger on where the world is heading?
5. Cypriots divided by 1974 war seek Shariah hub
6. The shocking thought of euro-dollar parity
†††Find us ...
††... on
Twitter
†† ††... on Facebook ††
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.