Greek Prime Minister Antonis Samaras played it safe, regarding his nation's reentry into the global bond market.
He lined up potential financial institutions early on, concerning Greece's April 10th debt auction, that included Invesco Ltd., BlackRock Inc. and JP Morgan. Samaras' strategy proved successful in the 3 billion-euro sale, that held offers for almost seven times this figure.
According to Kathimerini, Invesco Money Manager Mark Nash claimed: "This trade is not without risk...It relies on European growth continuing to improve. The fundamentals in Greece are not terribly rosy, but there's no doubt they are doing a lot better".
Along with Invesco, Greylock Capital Management LLC, BlackRock and Legal & General Investment Management invested in the Hellenic bonds. According to the the Greek Finance Ministry, approximately half of the debt was acquired by U.K. investors and one-third was taken on by Europe. Samaras described,"International markets are now expressing in the most undoubted way possible their confidence in the Greek economy".
As reported by Bank of America Merrill Lynch indexes, the average maturity debt yield from Greece, Portugal, Ireland, Italy and Spain declined to 2.199% on April 22nd. This is the lowest figure since 1998. As the Finance Ministry stated, desire for Greek bonds was headed by true money investors, that used concrete funds and not borrowed revenues. Hedge funds purchased approximately 33%, while asset managers bought 49%. Insurance funds and pension procured 4% and banks received 14%.
Two days ago, JP Morgan's Dimon stated via email, "It is in everyone's best interest to help Greece recover and thrive, and we at JPMorgan are pleased to do our part. Dimon's grandfather immigrated to the United States after working as an Athenian banker.