Pimco Says Greek Bonds Illiquid and Volatile Until Accord
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Pricing in Greece’s bonds will be volatile and the market will be illiquid until the nation’s four-day old government reaches agreement with international creditors over its debt, according to Pacific Investment Management Co.
Prime Minister Alexis Tsipras is seeking a new accord, having said previously that Greece should give investors a “significant haircut” on the amount they were promised. That suggestion was met with skepticism by officials across the rest of Europe. It also helped Greek three-year note yields this week swing in a range of about 900 basis points, or 9 percentage points, the most since the Mediterranean nation restructured its debt in March 2012.