US debt specialists increasingly believe that defaults in the eurozone are inevitable, with Greece leading the way. “This is the endgame for Greece, there is no other way out,” says Xavier Baraton, global CIO fixed income, CIO North America at HSBC.
Other key market investors also reveal that they are preparing for the situation to deteriorate.
“The EU had been hoping that they would be able to come up with a just-large-enough solution to buy enough time for natural healing to occur through fiscal austerity and economic growth, but the markets will not give them that leeway,” says Andy Johnson, chief investment officer for investment grade strategies at Neuberger Berman in Chicago.
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