Goldman Sachs Recommends Buying Greek 30-Year Bonds Through `Bumpy' Times

Goldman Sachs Group Inc. said investors should buy Greek 30-year government bonds as backstops from the European Union and central bank reduce the risk of owning the debt.

“With the European Central Bank likely to maintain its longer-term refinancing operations for a while,” the allure of this trade will “remain high,” Goldman Sachs analyst Michael Vaknin in London wrote today in an e-mailed research note. The “process might be bumpy at times,” he said.

Goldman Sachs made the trade recommendation starting Sept. 3, according to the note.

The Greek bond maturing in September 2040 fell, sending the yield 3 basis points higher to 9.36 percent as of 12:32 p.m. in London.

To contact the reporter on this story: Paul Dobson in London at pdobson2@bloomberg.net

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