Greek bondholders may get deal linked to future GDP

Bondholders in debt swap talks with Greece may get offered a sweetener in the form of a coupon linked to the future GDP growth of the country.

As talks between creditors and the country continue, Bloomberg is reporting a new ‘gross domestic product warrant,' tied to the deal may be offered to ease the impact of accepting a lower interest rate on new bonds. Talks have reached an impasse as creditors are reluctant to take such punitive terms on any new bonds issued as part of a debt swap deal. The current proposals mean investors are looking at an estimated loss of 70% in total, but a GDP warrant would trim the loss by an estimated 0.5-3% Greece and private creditors are near to signing a tentative deal that would include t...