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Does buying existing bonds help prop up the Greek govt? Remember - they don't get any money from that transaction. If you want to help prop up the Greek govt,
by anamax 15y ago
Does buying existing bonds help prop up the Greek govt? Remember - they don't get any money from that transaction.
If you want to help prop up the Greek govt, you probably have to give it money, that is, buy new bonds from it. It's probably not offering to pay 74% on such loans. And, given the yield of current bonds, it's probably not even bothering to try to sell bonds.
- hugh3 15y agoDoes buying existing bonds help prop up the Greek govt? Remember - they don't get any money from that transaction Well in some sense... if you create demand for the existing bonds then you create confidence in them, and hence drive down yields on the next round of bonds that get issued.