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  • Greece has a checkered history when it comes to repaying its debts.


  • Defaults by the 19th and 20th centuries, peaking with last year's shock failure to pay back the IMF on time.


  • Thanks to the current crisis, it's been 18 months since Greece was last able to sell bonds on international capital markets.


  • But if the Prime Minister has his way, investors won't have to wait too much longer for new issuance.


  • After two elections, a referendum, and fretful negotiations with creditors to secure a new bailout and avoid leaving Europe,


  • Greece is hoping to restart sales for sovereign bonds within the next 18 months.


  • Then again, debt sales in Greece have never really dried up. On Tuesday, Athens sold over 1.6 billion Euros of 6 months T bills to refinance maturing debt


  • at a rate of 2.97%, the exact yield that it sold data since March 2015.


  • Buyers of this debt tend to be Greek banks, which are not really buying new debt but renewing positions.


  • But in the wide degree debt market, there's evidence that other source of buyers have restarted to reappear once again.


  • Last year was, by any measure, a problem for investors in Greece. The Athens' stock exchange was down over a 25% over the year.


  • Among Greek bonds may have been one of the better performance in the region. They suffered months of painful volatility.


  • Prices for Greek debt due to mature in 2019 drop to 16 cents in the Euro.


  • And bankers of Morgan Stanley started to talk about the idea that if Greece was forced to exit the Euro, the bonds could be worth as little as 4 cents in the Euro.


  • But prices for those same bonds are now 19 cents in the Euro, which might suggest a cheerful outlook for investors,


  • if it were not for the fact the yield remains far higher than any other in the region.


  • Aware that the economy is frail and changes demanded by creditors would be highly unpopular.


  • Bond investors are hoping that the ECB would one day include Greek debt in its QE program, but this is by no means a done deal.


  • Because of the bond's junk rating, the ECB needs to institute a waiver, which has shown little enthusiasm for doing in recent months.


  • But if you think Greece's future is at the heart of the Eurozone, that could be plenty room for prices to keep on rising.


Greece has a checkered history when it comes to repaying its debts.



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