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Some investors return to Greece

May 15, 2013 at 1:17 PM   |   Comments

ATHENS, Greece, May 15 (UPI) -- Market research firm Dealogic said Greek companies have sold $2 billion worth of bonds in 2013, a sign of recovery on a corporate level.

A year ago through the same period there were no Greek corporate bond sales, The Wall Street Journal reported Wednesday.

Although risks remain, investors appear to be returning to Greece, which has accepted billions of dollars in international assistance under terms that it drastically scale back spending, raise taxes and sell various assets to reduce government debt.

In 2012, holders of Greek government bonds took a $130 billion cut in their investments and it looked like Greece would be the first country to exit the eurozone.

This year, things look different in Athens. The European Commission on Monday said the government may need to adopt more austerity measures in 2014 but the stock market, 90 percent below 2007 levels, has rebounded in the past 12 months, climbing 80 percent.

York Capital Management, Dromeus Capital, LNG Capital and CQS LLP have made recent investments in Greek companies.

Even Fitch Ratings gave Greece a nod of approval, upgraded the country's credit rating on Tuesday to B-minus. That is still a junk bond status, but Fitch said fears that Greece would leave the eurozone had "receded," the Journal said.

Not everyone is enthused.

"We're still avoiding Greece at the moment," said Nicola Marinelli, a portfolio manager at Glendevon King Asset Management.

"If there was some weakness in the market, Greek bonds would struggle to perform."

© 2013 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
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