Tags: Pimco | Greek | Bonds | Risky

Pimco: Pass Up Greek Bonds, It's Still Too Risky

Wednesday, 14 Apr 2010 08:54 AM

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
The European Union may have pledged aid to debt-stricken Greece, but the world's largest bond fund isn't going to buy Greek bonds any time soon.

European Union finance ministers and the International Monetary Fund have offered Greece $61.1 billion in loans as the country struggles to narrow is fiscal deficit to 3 percent of gross domestic product — the ceiling ordered by EU countries — from a current deficit of around 11 percent.

However, Pimco, the world's largest bond fund, says it will wait to buy Greek debt until the country gets its finances in order.

“It’s probably a little bit too early for us to be buying Greek debt yet,” Michael Gomez, Pimco’s co-head of emerging markets, tells Bloomberg.

“They have received a little bit of breathing room from the announcement we saw over the weekend. But this doesn’t change the fundamental adjustment Greece is facing and that continues to be a very large and daunting one.”

Investors snapped up Greece's short-term bonds on news of the aid, although analysts warn that the threat of a Greek default is still very real.

“Even under relatively conservative assumptions the Greek debt situation is unsustainable,” says Erik F. Nielsen, the chief European economist at Goldman Sachs in London and a former International Monetary Fund official, according to the New York Times.

“Something has to give.”

© 2014 Moneynews. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

Judge Dismisses Lawsuit Over Amelia Earhart Search

Saturday, 26 Jul 2014 07:10 AM

A federal judge on Friday dismissed a Wyoming man's claims that an aircraft recovery group secretly found wreckage of av . . .

Fla. Lawmaker Wants D'Souza's 'America' Shown in Schools

Friday, 25 Jul 2014 22:51 PM

A Florida state lawmaker plans to introduce a bill making conservative filmmaker Dinesh D'Souza's new movie, "America,"  . . .

PETA Paying Overdue Detroit Water Bills for People Who Go Vegan

Friday, 25 Jul 2014 21:37 PM

Amid angry protests over Detroit's effort to shut off delinquent water customers, People for the Ethical Treatment of An . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved