Greek Swap Will Raise All Euro-Region Debt Costs, Armstrong Says

Greece’s decision to force losses on some bondholders will drive up borrowing costs for all European nations, according to Armstrong Investment Managers LLP.

“The market will demand a risk premium for all euro-zone bonds, even from Germany, following today’s restructuring,” Patrick Armstrong, a managing partner at the London-based money manager that oversees about $350 million, said today in an e-mailed response to questions. “Over the long-term this will lead to higher borrowing costs for everyone, as a risk-free rate does not exist.”