Greek Funds Head Warns Debt Restructure to Devastate Economy

Greece’s money managers are warning of damage to an already crippled economy should European leaders move to restructure the country’s debt.

Greek 10-year bond yields and the cost of insuring the country’s debt against default rose to all-time highs at the end of April amid speculation about a debt write-off or an extension of repayment timelines. Standard & Poor’s cut Greece’s long-term sovereign credit rating by two levels yesterday to B, five notches below investment grade. The rating may be lowered further, S&P said.