Go figure. For a few hedge funds, Greek debt is turning into one of the
trades of the year.
According to Reuters news that Athens - backed by euro zone
ministers and the International Monetary Fund - will buy back some its own debt
from private investors sets a floor under the price of its bonds, handing many
who picked them up at rock-bottom levels big gains.
The funds - which include Daniel Loeb's Third Point - have
spent months building up positions in the debt-beleaguered country's bonds,
rightly betting that their price would rise as the risk of a Greek exit from
the euro zone receded.
Some have already banked profits from that bet, but
indications Athens will target a cost of around 35 cents on the euro in its
buyback plan, if successful, is a boon for those still holding the bonds…..
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