Greek sovereign bonds have made a spectacular comeback these last two years, with yields falling from over 10 percent to below 4 percent as the country prepares to exit its bailout program and finance itself on the markets.
On Friday the benchmark 10-year bond yield stood at 3.845 percent.
“We think that Greek equities should be next to outperform,” wrote Lyxor Asset Management, which noted that “the Athens Stock Exchange (ATHEX) has underperformed the EuroStoxx300 by 80 percent since the eurozone crisis started.”
If Greek shares catch up with their peers the way the country’s sovereign bonds have with eurozone’s so-called peripherals, the upside would be impressive.
“A recovery of the ATHEX back to its 2014 highs would grant a lofty 50 percent price return,” Lyxor added.