Greece could return to bond market next year


Greece could return to bond markets as early as next year if it agrees a program with its creditors, market participants said, though some form of debt relief might be necessary before investors are willing to invest in its bonds.

“Restoring market access, which is an objective of any financial assistance program, lowers the need to draw on the total financing envelope,” the Eurogroup said in a statement on Friday.

A Greek government bond deal could come sooner than people realize at this moment if all goes smoothly, investors and bankers said.

“Last year you saw Greece complete a bond deal in the sub-4 percent region, which shows you that it can happen, and that sentiment can change quickly,” said John Taylor, fixed income portfolio manager at AllianceBernstein.

Greece last year issued a 3-billion-euro April 4.75 percent 2019 note at a yield of 4.95 percent and a 1.5-billion-euro July 2015 note at a yield of 3.5 percent.

“But first, somehow, the debt-to-GDP needs to come down before people consider investing – whether that’s through a haircut or other means,” he said.