Legal and Finance Finance Greek Bonds
Greek Bonds
Despite Greece’s rough financial times in the past (and they’re not over yet), investing in Greek bonds over the past two years has had the highest yield out of any European bond.
In 2014 and as early as late 2013, everyone was predicting that Greece would collapse, default on its payments, and leave the Euro-zone and flat-out go bankrupt. As a result, Greek bonds were seen as high risk, high return bonds that people were warned to stay away from.
However, Greece did not go bankrupt and even after all the outcry it received for having a socialist government, SYRIZA, in power, it did not leave the Euro-zone. In fact, since SYRIZA’s election, there hasn’t been a stock, bond, commodity or currency market that has returned what the Greek bond returned.
The Greek bond earned more than 100 percent in a couple of months. With interest rates reaching an all time high in July at 19%, anyone that had invested their money would have made a fortune.
The current interest rate is at 8.6%, which is 6 points higher than the US (2.22%).
With Greeks firmly expressing their desire to remain in the Eurozone and stabilize their economy, betting on the Greek bond might not be such a risky venture as some would make you believe.