Greek Bonds Are All the Rage in Europe, If You Can Find Them
- Spread to bunds dips below 100 bps for first time since 2008
- Small size of the market has amplified impact of ECB backstop
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Written off by most investors after a debt crisis over a decade ago, Greece’s stunted bond market is making a roaring comeback.
The extra yield investors demand to hold the nation’s 10-year bonds over equivalent German securities -- the region’s paragon of safety -- briefly dropped below 100 basis points last week for the first time since 2008. And in an anomaly rarely seen since 2009, junk-rated benchmark notes issued by Greece pay less than Italian ones.