Reuters Analysis finds Greek debt relegation lacks appeal for EM investors

On the day Greece was removed from many developed market bond-tracking indices on June 30, Reuters reported in the analysis “Greek debt relegation lacks appeal for EM investors” that emerging market funds were just as wary of picking up the paper in the current environment. With Greek debt still priced to show more than a 30 percent chance of default, Reuters Investment Strategy analysis discussed how European policymakers were likely to use the time the recent bailouts and rescues have offered to look at a variety of solutions for Greece – including the Brady Plan Initiative of the late 1980s that dealt with a decade of sovereign defaults across Latin America by organising restructuring, agreed haircuts and innovative debt swaps.