Greek bond and equity markets are paying the price on Wednesday for the election results from Sunday.
As Greek voters chose to turn its back on Brussels and the EU, foreign investors began pulling assets out of the country.
The new Prime Minister Alexis Tsipras spoke Wednesday about “radical change” to restructure the Greek bailout and how foreign investors will be treated in the restructure.
The carnage was wide spread:
- 3-yr bond yield rises to 16.5%
- The spread on the 10-yr vs bunds soars more than 1,000 bps
- All Greek banks fall more than 20% Wednesday on huge volume
- Bank stocks are down 40% since Syriza Party’s victory on Sunday