Greece’s return to the capital markets in April this year was celebrated as a turning point in the battered country’s fortunes. The 5-year, euro denominated bond was met with strong demand by investors. Yet economists were entirely unconvinced that Greece’s fundamentals had improved, and continue to rate Greece by far the riskiest issuer among the eurozone periphery. Sure enough, as the year drew to a close Greek bond yields soared once again while elsewhere in Europe many issuers saw their borrowing costs fall to all-time lows. The announcement of a snap election in December did not help.
Greek banks focus on the present August 2014 The country seems to be turning a corner: there are hopes its economy might return to growth this year. Local banks think they’re in good shape for the European Banking Authority tests and that there might even be opportunities in non-performing loans.
Best borrowers 2014: Peripheral sovereigns stage a comeback June 2014 In April, Greece attracted €20 billion of orders for a €3 billion five-year
issue offering 4.95%. Such an outcome would have been unthinkable a year ago and
is only the most extreme example of the near-perfect funding conditions now
enjoyed by many peripheral sovereign borrowers that were locked out of the
market until recently.