As a national referendum on Greece’s potential deal with creditors looms on Sunday, the country’s future in the euro zone seems more uncertain than ever. But some large investors are apparently not bothered by any anxiety. They are thinking of betting on Athens once again — via government bonds.
Bargains are beckoning there. Ever since negotiations between the leftist government in Athens and its international creditors began to seem more and more likely to fail in recent weeks, the price of bonds has fallen dramatically and their yields have shot upward.
Other investors want to retain their small share of Greek bonds and are purchasing government securities in the rest of southern Europe. There as well, the Greek drama has carried bonds along in its wake.