Low-yield market spurs rethink on Greek bonds

LONDON (Reuters) – Some hedge funds are returning to the Greek government bond market less than a year after the country was bailed out for the third time, as the hunt for yield intensifies in a low-rate environment. The debt-laden nation this week eased capital controls as it continues to make progress on bailout-mandated reforms. This steady progress has been highlighted by some investors as a buying opportunity, particularly against the backdrop of negative yields in a large portion of the core eurozone sovereign market. Even peripheral sovereign bonds are trading at record low yields. “Greece is on a slow path to recovery. They have undertaken a lot of reforms, including on pensions, on tax collection and the new ambitious constitutional reform,” said Alberto Gallo, head of macro strategies at hedge fund Algebris, who recommends a Greece versus Portugal trade. “They should also have pretty good tax revenues in the summer and we are looking at an inclusion in the ECB QE program by year-end,” he added. an improved set of results in the first half of 2016, primarily due to the increased contribution from US operations as well as the improved results generated in Egypt. Consolidated turnover reached 723.8 million euros, posting a 7.6 percent increase compared to the first half of 2015. Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) increased by 13.5 percent reaching 119.5 million. Net profit after minority interests and the provision for taxes stood at 9.2 million, compared to 24.2 million euros in the same period the previous year. Titan commented that the bottom line results were negatively impacted by foreign exchange translation effects, particularly