Japonica expects Greek debt yields to fall to 5 pct

Japonica Partners & Co, the US investment firm that offered to buy as much as 4 billion euros of Greek government bonds, expects yields on the securities to drop to 5 percent early next year, a level last seen in 2009.

“Greece has accomplished what most would have thought was impossible,” founder Paul Kazarian said in his first public comments since the firm announced its tender offer in June.

The market has been “almost certainly wrong, particularly in comparison to eurozone peers.”

Japonica’s offer expired last month and the firm said it’s now one of the largest holders of Greek government debt, without disclosing how many bonds it owns.

The Providence, Rhode Island-based firm paid as little as 11.4 percent of face value for the bonds it purchased, Kazarian said in a conference call.

It expects the debt to be valued at more than 85 percent by next year, he said.