What happened to the Grexit?

More on this and developments in bond yields over the next few weeks. Greek (and Italian and Spanish) bond yields are down. Credit ratings have stopped deteriorating and Greek ratings have even improved recently. Certainly a temporary stability as emerged and the political noises are less worrying than they were a few months ago.

Would I invest in Greek bonds just yet? Probably not. Not because I think they will necessarily default or leave the Euro, but because the maximum upside just isn’t that great compared to equity like investments and the risk of loss still potentially higher.

A more interesting question is whether I would invest in Spanish property. I haven’t worked that part out yet.

CNN Money has some more on the background of how Greek and Euro politicians manoeuvred to calm the seas.

Published by David Kirk

The opinions expressed on this site are those of the author and other commenters and are not necessarily those of his employer or any other organisation. David Kirk runs Milliman’s actuarial consulting practice in Africa. He is an actuary and is the creator of New Business Margin on Revenue. He specialises in risk and capital management, regulatory change and insurance strategy . He also has extensive experience in embedded value reporting, insurance-related IFRS and share option valuation.

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