Who’s afraid of a little default?
Hedge fund investors may have been surprised by Sunday’s “no” vote for austerity, but they’re still ready to buy up more Greek government debt, reports the New York Post. Even if Greece decides to exit the euro, some investors believe that the bonds still won’t default. Private-sector bonds aren’t subject to the bailout or haircuts, and make up only about $70 billion of the $354 billion the country owes. Writes the Post:
“If Greece defaults on every official entity, it’s not a default on the private-sector bonds,” said a major hedge-fund investor who requested anonymity. “It’s very easy to service the private-sector bonds.”
Photo: dierk schaefer via Flickr.