Earlier this morning, Greece said that 85.8 per cent of its private creditors were on board with the controversial debt swap deal. And with the collective action clauses (CAC) expected to be triggered, the total participation rate is estimated to jump to 95.7 per cent.However, many experts doubted that the deal would find so much support.
Art Cashin, UBS Financial Services’ director of floor operations, spoke to some sceptical traders who think there may have been some backroom dealings on the matter.
From today’s Cashin’s Comments:
Some savvy (but very cynical) traders think the heavy participation may have been structured. They posit that in order to keep the deal from falling apart, some banks, on government instructions may have paid a premium to the “reluctant” participants. That would get them out of the way and allow for more tenders by the buyers. No proof – just conjecture.
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