National Bank of Greece ADR (fka NBGGY)

[Ataglance2]

you got me digging deeper for my understanding....

It is important to understand that Greek CDS are useful for controlling risk for investors and lenders. Greek CDS provide effective hedges not only for holders of Greek government bonds but also for international banks that extend credit to Greek corporations and banks, for investors in Greek stocks and for entities that have significant real estate or corporate holdings in Greece. For many of these participants, the sovereign CDS market is the most effective means of hedging credit risk in Greece. Recent anecdotal evidence indicates that banks with significant credit exposure to entities in Greece have been active purchasers of Greek sovereign CDS protection. Much of this activity could be misinterpreted as “naked CDS.” ISDA further believes that this activity cannot have any significant impact on Greek government prices because of its insignificant size in relation to the underlying government bond market.