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The bond market "buzzes" for the return of Greece. As the country approaches the exit of multi-year rescue plans, government bond yields have fallen vertically since the peak of 2012, indicating that investors are preparing to return Greece on the debt markets .
Finance Minister Euclid Tsakalotos visits the world's financial capitals amid rumors that Greece will sell more bonds this year. OTE, the country 's largest corporate borrower, has attracted orders of over 1.5 billion euros from investors for the sale of 350 million dollars. euros of four-year bonds
. Greece, which has been among the most affected by the European debt crisis, had to rely on foreign aid of 300 billion euros from 2010. Greece now posts a budget surplus and last month S & P Global Ratings reported in B +. Although lower than investment grade, this rating, coupled with some of the highest yields in the eurozone will help boost demand for a new bond offer
. ] "There will certainly be demand, no doubt about it," said Bloomberg Scott Thiel, money manager of BlackRock . "Dollar investments are very expensive and there is nothing in Europe to offer such returns."
The yield on 10-year Greek government bonds stood at 3.88% yesterday on Wednesday, up from 7.88% two years ago, and about 40% in 2012. They are considerably higher than the corresponding securities of Italy (2.69%), Spain (1.30%) and Germany (0.37%)
OTE, the largest shareholder that is 45% of Deutsche Telekom, reduced its bond yield to 2.5% -2.625% compared to the original target of 2.75% which shows a strong demand. Kepler Cheuvreux and Kepler Cheuvreux note that the company can prepare for a BB + upgrade of the current BB
Although Greece has no financing needs until 39; in 2022, Prime Minister Alexis Tsipras might want to take advantage of the reduction in borrowing costs and improving the investment climate, selling bonds, says Bloomberg. The country has already made two successful bond sales since July 2017.
"Do not have liquidity needs does not mean it's insignificant to find the bond market price" Andrew Jackson Head of the Fixed Income Department of Hermes Investment Management . "It's the right time to do it." Greylock Capital Management – which invests in undervalued, distressed and high yielding securities with $ 1 billion in funds – would like to see Greece sell 20-year securities maturing 30 years, according to Diego Ferro, managing director of the fund. Meanwhile, the badet manager of Algebris Investments Alberto Gallo, continues to consider "Greek bonds under 10 years old Greek bonds could worry investors, especially after recent turbulence in the Italian bond market: Data from the Bank of Greece show that the HDAT's turnover rose from to 331 million last month, compared with 434 million in May. , the turnover rose to 136 billion euros
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