Hedge Funds May Hold Back Greek Bond Plan, Nomura Says
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Greece’s efforts to reduce indebtedness by repurchasing its own bonds won’t be a “resounding success” because hedge funds that hold as much as 22 billion euros ($28.6 billion) of debt lack incentives to participate, according to analysts at Nomura Holdings Inc.
Greece, which is scheduled to unveil details next week of a plan to buy bonds with a face value of 62 billion euros, probably won’t offer more than the 28.1 cents on the euro that the bonds closed at on Nov. 23, euro finance ministers said Nov. 27. With bonds now trading higher, hedge funds will seek a higher price, Nomura’s Dimitris Drakopoulos and Lefteris Farmakis wrote in a report today.