NewSmith's Maigrot: Be wary of ‘manageable' Greek exit claims

Jean Maigrot, manager of the long/short Newsmith European fund, has warned investors of the damaging long-term impact on the eurozone of a potential Greek exit, while expressing concerns the ‘Draghi put' may not be substantial enough to be properly effective.

Yields on Greek 10-year government bonds rose about 10% for the first time in 15 months last week, as the latest polls showed anti-austerity party Syriza was still ahead in the run-up to the election on 25 January. The party wants to renegotiate Greece's €240bn bailout from the European Union and the International Monetary Fund, triggering fresh concerns about the country's future in the eurozone. Maigrot, who has run European money for over 25 years, said although the consensus in the market is any Greek departure following the election will be ‘manageable' for the eurozone, he belie...