ECONOMY

Buy Greek bonds, Morgan Stanley tells its clients

US investment bank Morgan Stanley is urging investors to buy Greek state bonds as a result of the restoration of confidence in the country that has seen the yields on Greek government paper drop considerably.

According to a Wall Street Journal report, Morgan Stanley’s financial forum last week heard the bank’s global head of sovereign strategy include Greek bonds among “the top fixed-income trades of the year.”

Paolo Batori explained this recommendation by reportedly saying that “we believe that Greece is going to be an improving macro story this year and next. Greek growth is going to regain strength this year and turn positive next year.”

The Greek government is determined to be very cautious in returning to the markets, as Finance Minister Yannis Stournaras has told Kathimerini that Greece first must secure a primary surplus and make its rebound clear before issuing bonds again.