Reuters rep;orts that hedge funds are preparing to resist Greece's attempt to cut
its debt by holding out against a government bond buyback in the hope of bigger
gains further down the line. Greece had
to offer a higher price than expected at a 10 billion euro buyback on Monday
after hedge funds buying bonds pushed prices higher. Resisting the urge to bank a quick profit,
hedge funds will rely on the fact many bondholders will tender their holdings
in the buyback. That will leave Greece with less debt, underpinning the value
of what remains.
Some managers are now convinced that international lenders
will do whatever it takes to keep Greece in the euro, improving the chances of
payouts to bondholders….
No comments:
Post a Comment