Not just bad news from Greece. The yield on ten-year Greek government securities (Bonds) fell by 13%: precisely to 17,03%. At the beginning of June it was over 30%.
What does this drop in Greek 30-year bonds mean? It simply means that a bond issued by Athens with a face value of one hundred is now worth more than 19 cents: at the end of August it was 15 and at the beginning of June even less than XNUMX cents.
In essence, those who bought Greek government bonds at the beginning of the summer would have more than doubled their capital today. Of course, investing in Greek stocks is very risky.
According to today's Corriere della Sera, they would have invested in Greek stocks above all American hedge funds (funds that place risky bets to earn a lot and quickly) as Greece's exit from the European Union became less likely: that is, after to the second bailout carried out by the EU and the International Monetary Fund, and after the elections in June which Samaras won.
Obviously, if Greece had exited the European market, the value of the drachma would have collapsed considerably, recording immense losses.
These American hedge funds, specialized in high-risk debt, began in the summer to buy 60 billion Greek ten-year government bonds (out of 300 available) that are not in the hands of the European Central Bank and the governments that saved Athens.
These investors have to some extent agreed with the leader of the Greek ultra-left, Alexis Tsipras, who argued that Merkel and her creditors would only bark but not bite, thus not expelling Greece from the European Union.
However, Athens will not benefit from these declines in yields as at 15% and above it remains cut off from the markets.
