Announcing a haircut on Greek bond holdings would help restore a positive mood to bond markets, which have largely priced in such a move, said DWS Investments' CIO Asoka Wöhrmann.
The potential for Greece to default has rattled markets this week, and Wöhrmann said if a haircut was introduced, devaluing the value of Greek debt, it would boost sentiment. He said people are treating the Greece issue "like the most important topic in the world, but it is not, Greece is just 3% of European GDP." He added core Europe is growing well, and global GDP is heading for 3.5% to 4% this year. Wöhrmann said any adjustment to Greek debt would suit investors who have already factored it into their positions, as well as CDS holders. "The first 12 months of the crisis will ben...
To continue reading this article...
Join Investment Week for free
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes