Morgan Stanley On Two Ways To Hedge Against A Grexit

Morgan Stanley thinks Greece is likely to stay in the eurozone, but offers a few hedging tips just in case they are forced out

While there’s still time for Greece and its eurozone creditors to reach a compromise, yesterday’s Eurogroup negotiations weren’t terribly promising and the ECB’s review of Greek ELA tomorrow probably won’t be either. Since Morgan Stanley shortlisted Greek government bonds as one of the 15 best trades for 2015, it’s revisiting those positions (in a report that came out just prior to the Eurogroup meeting) with advice on how to hedge against a Grexit.

“Having shortlisted Greek government bonds as one of our 15 top trades for 2015, we admit that it is proving a rather uncomfortable...