Armstrong: Greece set to restructure debt in 2013

Greece will be forced to restructure its sovereign debt in June 2013 when a spate of longer-term notes will need to be rolled over, according to Patrick Armstrong.

Distinction Asset Management’s managing partner said although Greece can continue to draw on the IMF and ECB’s funding packages, a restructure or default is inevitable in the longer term. “Greece will muddle through next year, hoping for growth, but it will have to restructure at some point,” he said. “June 2013 is when a restructuring comes. With the packages Greece has available, it should be able to last until then, but then there is no way out.” Armstrong bought one-year Greek bonds for the IM Distinction Diversified Real Return fund after Moody’s downgraded the country’s debt ...