Greek bonds’ 47 percent return is a world beater
Greek bonds returned almost four times as much as any other government securities this year as the nation that sparked Europe’s sovereign debt crisis moved toward economic recovery after six years of contraction. Greece’s 47 percent year-to-date return was the best of 34 sovereign debt markets tracked by Bloomberg World Bond Indexes. The second-best performer with 12 percent was Ireland, which exited its international bailout program on December 15. Greece may record a primary surplus in 2014 that would qualify the country for additional debt relief under an accord with its creditors, Moody’s Investors Service said on November 29. “We are constructive on Greek government bonds,” Elga Bartsch, chief European economist at Morgan Stanley, said at a briefing in London on December 2. Gross domestic product “should stabilize and then start to grow. They will get some additional help,” she said. Greek assets are winning fans as fixedincome, currency and derivatives markets show the crisis that gripped the euro area from 2009 is finally fading. With European Central Bank President Mario Draghi sticking by his pledge to backstop the region, investors are returning to Greek securities, even after the nation’s financial trauma caused private bondholders to write off more than 100 billion euros in 2012.
NCH Capital on Corfu.
NCH Capital Inc, a US private equity firm, won permission from the Greek government to build a tourist resort on the island of Corfu. NCH, based in New York, will spend 23 million euros on the leasehold and invest about 75 million euros to develop a hotel, marina and private holiday homes, said Andi Ballta, the firm’s managing director for the Western Balkans and Greece. “We were looking at Greece way before anyone considered investing there and that’s put us ahead of the competition,” Ballta said. Construction may start as early as 2015, he said.