{"id":18239,"date":"2018-08-20T23:13:11","date_gmt":"2018-08-20T20:13:11","guid":{"rendered":"https:\/\/bestinsurance.gr\/a1\/?p=18239"},"modified":"2018-08-20T23:13:11","modified_gmt":"2018-08-20T20:13:11","slug":"after-almost-a-decade-greek-bonds-are-back-on-traders-radars","status":"publish","type":"post","link":"https:\/\/bestinsurance.gr\/a1\/archives\/18239","title":{"rendered":"After Almost a Decade, Greek Bonds Are Back on Traders’ Radars"},"content":{"rendered":"
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After Almost a Decade, Greek Bonds Are Back on Traders’ Radars<\/h1>\n<\/div>\n
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  • Needs to build out yield curve to lure investors: Commerzbank<\/li>\n
  • Country\u2019s debt is still 180 percent of GDP; growth is positive<\/li>\n<\/ul>\n<\/section>\n
    By\u00a0John Ainger(Bloomberg) —<\/p>\n<\/section>\n
    Greece, the euro area\u2019s most indebted nation, is back on bond buyers\u2019 radar as the nation exits years of financial bailouts.A couple of things, in particular, favor Greek securities. The first is their relatively long maturity profile, which suggests the nation needs to sell debt less frequently and hence has reduced vulnerability to sentiment swings. Secondly, the country\u2019s economic growth is now clearly in positive territory and picking up.<\/p>\n

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    \nThe longer debt profile means that \u201cthe risk emanating from a buyers\u2019 strike forcing Greece\u2019s hands — that\u2019s very much limited,\u201d\u00a0Peter Schaffrik, global macro strategist at RBC Capital Markets, told Bloomberg Television. \u201cAt these yield levels it\u2019s a decent investment.\u201d<\/p>\n

    The yield on the nation\u2019s 10-year bonds declined two basis points to 4.32 percent on Monday, a far cry from the near-40 percent levels seen before Greek debt held by private investors was restructured in March 2012.<\/p>\n

    Greece hasn\u2019t held a bond auction since the start of the restructuring of its public finances,\u00a0issuing\u00a0debt only via syndication in recent years. Finance minister\u00a0Euclid Tsakalotos\u00a0has done a marketing tour through the world\u2019s financial capitals in recent months amid speculation that Greece will announce this year a program for tapping the markets in 2019.<\/p>\n

    \u2018New Benchmark\u2019<\/h3>\n

    The nation could issue a new 10-year benchmark bond as soon as next month, according to Commerzbank AG head of fixed-rate strategy\u00a0Christoph Rieger. While Greece has a 23-billion euro ($26.3 billion) cash buffer, which means financing needs aren\u2019t urgent, building out the yield curve would help lay the groundwork to build up some investor support.<\/p>\n

    \u201cAfter the five- and seven-year notes issued in 2017 and 2018, a new 10-year benchmark would be the next logical step,\u201d Rieger said.<\/p>\n

    The stock of debt amounts to around 180 percent of economic output — much of which is owned by European creditors. The country has received 289 billion euros of rescue loans over the last eight years. It is currently ranked non-investment grade by major ratings agencies — meaning it is ineligible for the European Central Bank\u2019s purchase program — although Fitch Ratings upgraded the nation to its highest level since 2011 on Aug. 10.<\/p>\n

    Now that the country has exited its bailout program, the country\u2019s debt will no longer be eligible for use as collateral with the ECB, so domestic lenders will need to use investment-grade assets to gain access to zero-interest loans, according to Rabobank International Plc. Recent political risks emanating from Italy and trade tensions may also make it tough to find a time to return to the market this year.<\/p>\n

    \u201cThe country need to stick to the reform agenda and ensure that from the market\u2019s perspective, the only volatility seen in Greek spreads is being externally, not internally driven,\u201d said\u00a0Matthew Cairns, a strategist at Rabobank.<\/p>\n

    The yield on Greek 10-year government bonds is currently at 4.32 percent, compared with a high of more than 44 percent in 2012 and having touched 3.65 percent in January. The recent risk aversion in markets have helped boost yields in recent months.<\/p>\n

    \u201cThey could come to the markets already, if they decided to do so, though naturally they would have to pay higher yields to compensate investors for the risks,\u201d said\u00a0Jan von Gerich, chief strategist at Nordea Bank AB. \u201cFrom an investors perspective, Greek bonds at current levels would be attractive for many.\u201d<\/p>\n<\/section>\n<\/div>\n

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     <\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

    After Almost a Decade, Greek Bonds Are Back on Traders’ Radars Needs to build out yield curve to lure investors: Commerzbank Country\u2019s debt is still 180 percent of GDP; growth is positive By\u00a0John Ainger(Bloomberg) — Greece, the euro area\u2019s most indebted nation, is back on bond buyers\u2019 radar as the nation exits years of financial<\/p>\n","protected":false},"author":1,"featured_media":18240,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[2],"tags":[],"class_list":["post-18239","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-2"],"jetpack_publicize_connections":[],"_links":{"self":[{"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/posts\/18239","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/comments?post=18239"}],"version-history":[{"count":2,"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/posts\/18239\/revisions"}],"predecessor-version":[{"id":18242,"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/posts\/18239\/revisions\/18242"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/media\/18240"}],"wp:attachment":[{"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/media?parent=18239"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/categories?post=18239"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/tags?post=18239"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}