The National Bank of Greece has an issue of preferred shares which trades on the NYSE that gives out $2.25/year in quarterly payments. Right now they are trading at an implied yield of 12.8%, assuming they actually pay. They are non-cumulative, and callable @ $25 in 2013, but this seems to be unlikely at the moment.
Yield chasers might note that if the crisis continues to worsen, 12.8% might go significantly higher, so market timing is a critical element in picking it off.
I won’t be touching these securities, I have a strict rule against investing outside my depth, and certainly the internal political situation and the dynamics of the Greek banking sector are far from my field of expertise.
You are truly dedicated to be looking at Greece debt @ 4am. Especially after a late nite of watching your beloved Canucks fall to the Hawks.
Fortunately the Canucks have disappointed me so often that I’m desensitized to them. Maybe I’ll start paying attention in the third round. At least we won the Olympics.
As for the Greek preferred shares in question, the trading day after posting this, they fell to 14.74, or 59 cents on the dollar, or a 15.2% perpetual yield assuming they continue to pay out. This spike down may, or may not be the bottom. It is impossible to tell without the benefit of having retrospect.