Yes, it really is offering a 400% return over one year. Hey, it's even got a government guarantee on it. And as a sensible investment it stinks, it's a right pig. Which is, of course, why it is offering a 400% return.
Hardly auspicious. No wonder yields on 1 year Greek debt hit 400 percent/year today. That’s not basis points, that’s percentage points. Invest 20 Euros today, you are promised to get back 100 Euros in a year.
Yes, it's a Greek Government Bond (GGB in the parlance). You really can buy them for 20 cents on the dollar and the yield to maturity is that 400% (actually, it's a little higher as there will be a coupon payment as well). Sure, it looks lovely, just great in fact, except when you think about the reason that it's trading at these levels.
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