Fund Managers Survey Says Greece Will Default

Discussion in 'Media' started by hvactec, Oct 20, 2011.

  1. hvactec

    hvactec VIP Member

    Jan 17, 2010
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    As Greek political leaders continue to insist the country will not default on its loans and will return to profitability by the end of next year, a Bank of America Merrill Lynch survey of global fund managers indicates that is likely impossible.

    The survey found that 92 percent of 199 fund managers skilled in money management believe Greece is just spinning the news with optimism unsupported by the financial facts. Worse for Greece, they believe the markets have already factored in what they believe is the inevitable and are making judgments based on a default. Some 70 percent said the default will happen within six months, but despite that they are less optimistic about the world’s economic situation as they think the markets expect Greece to fall.

    “The survey shows investor consensus has priced in, or hopes for, an orderly default by Greece,” Michael Hartnett, chief Global Equities strategist at BofA Merrill Lynch Research, said in the survey, reported in OnWallStreet. They are now more concerned about the Greek Contagion affecting the rest of Europe, including other Eurozone countries with weakened economies, such as Italy, Spain, Portugal, and Ireland. Greece is the worst off, with a 10.6 percent, a projected debt to reach $515 billion, and a deficit of Gross Domestic Product running at more than 162 percent. “Europe appears back from the brink. But it seems investors are waiting for the all clear from both Europe and emerging markets before committing cash,” Gary Baker, head of European Equities strategy at BofA Merrill Lynch Research, said in the report.

    BofA officials said a total 286 panelists with $739 billion of assets under management participated in the survey conducted between Oct. 7 and Oct. 13. The fund managers oversee $570 billion in investments.

    European Union leaders will gather on Oct. 23 in a summit that could finally decide whether Greece can be

    read more Fund Managers Survey Says Greece Will Default | Latest News from Greece

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