Bond investors Want Actions & Not Just Premium From Greece Govt.

Invesco Ltd. (NYSE: IVZ) is an independent global investment management company managing assets worth $423 billion, expected more action from the Greek Govt. to resurrect it’s finances,  as just highest bond yields in the euro area wont lure investors to buy more Greek bonds. Invesco reduced its holdings of Greek bonds in the fourth quarter as the fiscal deficit was more than 12% of GDP as compared to EU’s 3% limit.

The Govt. announced as much as 4.8 billion Euros ($6.5 billion) in extra cuts in deficit two days ago reacting to this investors bought 5 billion Euros of Greek 10-year bonds yesterday, Axel Blasé a fund manager expect concrete structural changes rather than myopic actions, before they decide to invest, he also added the current spreads look attractive but also cautioned against volatility ahead.

The spread, which averaged 54 basis points in last 10 years, reached a high of 396 basis points in January, the biggest gap since before the euro’s debut in 1999. Bloomberg reported Greek public debt is the worst performing in the Euro zone and has lost about 1.4%.

Some companies like DWS Investment Gmbh wish to take a contrarian approach to Invesco’s call to stay away from buying Greek bonds as they expect its European partners will help Greece to come out of the mess without scars. Many investment experts see a value in buying Greek bonds as a robust demand was seen for 10- year bonds yesterday & the order book exceed 16 billion Euros more than three times of face value on offer.