Buying Greek Government Bonds

dreamteam_2

I know what your all thinking, don't do it!! But 10Y Greek bonds were selling at a 30%+ coupon yield. I like a bit of a gamble, so was thinking about investing around £500 in said bonds.

But does anyone know how I would go about buying these? I have contacted the company I use for share dealings (Share Centre), and also searched the internet, but cannot find an answer!

Any help would be gratefully appreciated.

rayf

Sorry - I have no idea but I might be interested too.

Credit-Crunched

dreamteam wrote: »

I know what your all thinking, don't do it!! But 10Y Greek bonds were selling at a 30%+ coupon yield. I like a bit of a gamble, so was thinking about investing around £500 in said bonds.

But does anyone know how I would go about buying these? I have contacted the company I use for share dealings (Share Centre), and also searched the internet, but cannot find an answer!

Any help would be gratefully appreciated.

Better off putting it on a 25/1 at Cheltenham, at least you have a chance.

Greece in 1 year is a mess, 10 years will be a ....

gadgetmind

If you're serious, then the Motley Fool Banking Sector board is the place to ask. Many people there invest in distressed bonds and prefs in the hope that they aren't as distressed as the market has priced them.

One guy just blew £64k on some bonds issued by the 5th largest bank in Kazakhstan!

However -
Now many brokers let you access these instruments.
The minimum purchase quantities can be high (hence the £64k)
They are very illiquid.
They are very high risk.

If you really do feel lucky, why not invest in Invesco Perpetual Global Financial Capital? This is a new fund that is buying subordinated bonds in global financial businesses such as insurers and banks.

Please let us know what you decide to do, but note that doing nothing is probably your best option!

dreamteam_2

Many thanks for all your comments. I am going to have a look around, and will post on here what i decide to do.

Masomnia

I wonder if that yield includes the 50%+ loss that private investors are going to have to take!

I think one of the main problems is going to be lack of liquidity, even if you can buy them, it may be impossible to sell them if you want to get rid. And the obvious risk of default. 30odd% is only going to be achievable if you hold to maturity and get your capital back.

I imagine the only people interested would be hedge funds who'll buy the debt and take legal action in the event of default.

purch

so was thinking about investing around £500 in said bonds

That will be an amount below the smallest dealing denomination.

Of course wait a few months, and you might be able to get a EUR 1,000,000 Bond for about that amount :eek: