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Just out of curiosity...

In a private tender outside of bankruptcy, any principal reduction must be agreed to by the bondholders voluntarilly. So, small holders can acquire debt on the cheap, not tender, and free-load off the big-boys haircut (if you'll excuse the pejorative phrasing; heck we little-guys need to have some advantages in this tilted game).

I'm curious if that holds in a politically forced workout outside of bankruptcy. All the news items keep talking about the banks being forced to agree to a reduction in principal. Is this an across the board reduction jammed down everyone's throat? Or is it a situation analagous to a corporate workout, where the principal reduction is confined to those parties directly consenting to the resolution? I presume the former, a la GM's collapse, but that was in a formal state of bankruptcy, which isn't the case for Greece at the moment.

Peter
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