OMGI's Wall: Why Greece is returning to the bond market

Growth outlook 'turning a corner'

Nicholas Wall, portfolio manager of the Old Mutual Global Strategic Bond fund, explains why Greece is about to turn a corner in its economic recovery and is returning to bond markets.

Greece plans to issue a new benchmark five-year bond. We believe that changes in the European political landscape, together with recent strong economic data, mean the bond should perform well. When deciding whether to invest in Greece, or any other European country that has found itself in difficulty amid the debt crisis, investors are ultimately making a call on European politics. Arguably, the market priced in too much European political risk premia at the start of the year. Investors sell off Greek bonds as IMF and EU fail to reach bailout deal Today, European solidarity appe...