Dealers are offering prices on credit-default swaps linked to Greek sovereign bonds after the contracts paid out last year following a restructuring of the nation’s debt.
It now costs $3.5 million in advance and $100,000 annually to insure $10 million of Greek debt for five years, signaling a 49.4 percent probability of default within that time, according to CMA. The data provider, which compiles quotes from dealers in the private market, has published prices on Greek swaps every day since May 21.
CMA received quotes irregularly since the government imposed losses on bondholders in March 2012 and had not provided prices since Feb. 28. Greece is not among the top 1,000 entities captured by the Depository Trust & Clearing Corp.’s central registry for the default swaps market.
Previous contracts were settled when Greece forced investors to exchange their bonds at a loss in the biggest ever debt restructuring.