Credit default swaps Greek port to 5 years interest of 10,697 bps, or 107%, up 581 bps from Friday's meeting, according to CMA Data Vision.



Basically, this level of interest, financial product buyers must pay more than the amount they provide.



The secured debt of $ 1,000,000, the buyer of protection must pay $ 1,069,700. Obviously that does not make sense for someone who bought 1 million liability insurance to pay a premium higher than bonds.



But the transaction makes sense when someone bought those bonds with a value of one million dollars with $ 400,000, for example. If you hold to maturity, the investor obtains a yield of 150%, provided that the Greek state to honor its payment obligations. If you doubt the ability of the Greek state to keep promises, the investor buys protection that pays $ 428,000 and has, in theory, ensure that you receive some money in any situation. Loss of bankruptcy would not reach $ 28,000 and earnings than if Greece goes bankrupt is $ 172,000.



At this point, the risk that Greece will go bankrupt in terms of CDS, is 94.9%, according to CMA.