The New Goldman, ie. BlackRock, thinks Greece fears are overdone.
Contrarians go long Greek debt. Especially if you believe bondholders will be saved during any bailout. We can imagine quite a few European banks are holding Greek debt, so you might have friends in high places:
The company has a so-called overweight position on Greek debt, holding more securities than allocated in its benchmark, even after Standard & Poor’s, Fitch Ratings and Moody’s Investors Service cut the country’s credit grades in December. The fund will continue with this strategy for “some time,” said Michael Krautzberger, co-head of European fixed-income in London, after EU leaders pledged yesterday to help Greece regain control of its finances.
“They won’t allow a Lehman-type crisis,” said Krautzberger, who helps oversee BlackRock’s $3.35 trillion of assets. “The market has worried too much about an imminent government default in Europe that will not happen because of the solidarity.”
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