Greek Debt

Betting on Bonds

Stay on target. Source: imago
All eyes are on Greece these days. Some are even putting their money on it.
  • Why it matters

    Why it matters

    As prices fall and yields soar, Greek government bonds might turn into a lucrative investment – depending on the outcome of Sunday’s referendum.

  • Facts

    Facts

    • Some investors are betting that Greece can avoid default.
    • Others are eying the rest of southern Europe for possible investments.
    • Investor heavyweights optimistic about Greece include Julian Adams of Britain and U.S. billionaire Paul Kazarian.
  • Audio

    Audio

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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.

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