Euro Zone Officials Reject Greek Bondholder Offer
By Joseph Griesbeck, CFA - Editor, Ownership Intelligence
Euro zone finance ministers rejected a Greek debt restructuring offer put forward by the country’s private bondholders. With no deal, Greece’s risk of default increases, leaving these private investors with securities that will be worth much less than they originally offered. This news comes as S&P declared it will likely downgrade its credit ratings to “selective default.” The Greek creditors have since pressed for a quick deal to salvage some of their investment. This report identifies the top institutions that have disclosed their Greek debt investments through public filings.
French investors hold more than two-thirds of all disclosed Greek debt held by public-filing institutions. With 24 Greek government bonds in its portfolio, Amundi has a $1.4 billion exposure as of its latest filings. Less stringent regulations do not require French investors to disclose its positions as frequently as Americans, for example, so some of its underlying funds like Predica have not updated their holdings in two years. Therefore these positions could have changed greatly recently, but Amundi funds like the Amundi Arbitrafe VaR 2 have positions as recent as November 30, 2011.
Greek sovereign debt is the security in focus, but the country’s corporate issuers feel the burden too. Of all institutions that filed positions in this asset, 82% of them domicile in the US. All of the top ten investors are American, with Signature Global Advisors as the only Canadian among these investors.