International investors consider five-year bonds of banks  safer than the Greek government’s, as seen in the weekly analysis of Moody’s, with the CDS’ movement, known as the risk premiums against default.

This happened since last week, CDS by Alpha Bank and Piraeus Bank recorded substantial declines whole those of the Greek government moved upwards.

As a result, most of the CDS of the two banks are now lower than those of the Greek government.

Specifically, the Alpha police decreased by 42 basis points per week from the 23rd until the 30th of April and ended up at 417 points. Alongside it, Piraeus Bank’s policy declined by 21 basis points to 418.

At the same time, CDS on Greek state five-year bonds rose by 19 basis points to 467.

As shown, through the completion of the recapitalization of the two Greek banks acts like a catalytic boost of confidence of international investors, which is expected to positively influence the intention of Alpha Bank’s bond issuance,  which is in the works.

The interest of the investment community in the Greek banking system is also clearly identified in capital increases, since it bets on the scenario that new funds will not be needed for the next three years and their pre-provision profits will continue to be enhanced, exceeding 2015 forecasts.