Greek Bonds Get some Love from Hedge Funds

Someone described Greek bonds as ‘bombed out assets’ that were trading around just 17 percent of their face value.

Well it seems there are some takers for these bonds these days. Judging from the yield on Greek government bonds maturing February 2027, which has fallen from 29 percent in May to sub-23 percent levels, and the narrowing of bid-offer spreads to a very reasonable 1 percentage point, it seems people are summoning up courage to buy these bonds as a value play, perhaps.

A lot of these investors are hedge funds, who are of the opinion that progress within Greece...