News is floating out this morning that Greece will be having a debt offering.
It's the first long term debt to come out since the bailout a few years back.
What are the terms?
5 year duration, running about 5%. Not bad.
And it appears to be oversubscribed. Lots of investors want in.
I'm not a bond guy. But when I see risk appetite for something like this, I start to look for proxies.
An example would be GREK - which is an ETF that looks at companies in Greece. But its top holdings are a Coke subsidary, a telecom, and a sports bookie. Not a fan.
The best bet here for a proxy is going to be NBG - National Bank of Greece.
Here's the chart:
What we've got here is a massive 6 month base. Measured move off the breakout is around 2 points, which isn't bad off a stock trading in the 5's.
This is one of those opportunities where there is news driven risk combined with a solid technical pattern. If the stock reclaims the 6's then the buyers will be solidly in control. This thesis is wrong if we lose about 5.25.