A handful of hedge funds are apparently returning to Greek state bonds exactly one year after a third memorandum bailout was signed, in search of higher yields amid a global market still characterized by low to negative interest yields, according to Reuters analysts.
The international news agency cites continuing efforts to implement memorandum-mandated reforms in the country and to deal with the public debt, on obvious reference to the Greek government’s repeated attempts at achieving debt relief. The article also cites last week’s loosening of still-imposed capital controls in the country.
The present situation, according to Reuters, offers investors an opportunity in a Eurozone country with higher yields on its state bonds, at a time when other Euro-zone members are in “negative territory”.
“Greece is on a slow path to recovery. They have undertaken a lot of reforms, including on pensions, on tax collection and the new ambitious constitutional reform,” according to Alberto Gallo, the head of macro strategies at hedge fund Algebris, who recommends a Greece versus Portugal trade, as Reuters noted.
“They should also have pretty good tax revenues in the summer and we are looking at an inclusion in the ECB QE program by year-end,” he said.
