ECONOMY

Mixed reaction from big investors to Greek election result

Pacific Investment Management Co (PIMCO) and hedge fund Greylock Capital Management say the election of the anti-austerity SYRIZA party in Greece hasn’t lessened their appetite for the country’s bonds.

The election has drawn mixed responses from investors.

Jeffrey Gundlach, co-founder of DoubleLine Capital, said that yields will increase.

Fidelity Worldwide Investment cut its holdings before the election and is staying on the sidelines, as is billionaire hedge fund manager John Paulson.

Greek bonds may offer buying opportunities in the coming weeks after some initial volatility produces better entry levels, said Lorenzo Pagani, managing director and money manager at PIMCO in Munich.

Greylock’s Hans Humes said he’s surprised by the reaction since the election.

SYRIZA has made it clear it won’t ask private bondholders to take further losses, removing the risk of a restructuring that would investors like Greyloc, he said.

[Bloomberg]