Mr. Simos was able to get a qtr of his order filled for Piaraeus bonds that were in strong demand. (It’s noted the NBG fund has $2.2 B USD in assets).Over 240 institutions from 25 countries bought Piraeus Bank bonds for a 5% return on their unsecured investment. Indicating an improved perception of the Greek economy, the yield on 10-year Greek government bonds has nearly halved to 6.75% from 13% a year ago. As foreign demands for Greek assets/stocks are increasing, bond yields are falling. By Neelabh Chaturved @ WSJ Moneybeat
Fp718591 previously posted one of NBG Asset funds was a top performing bond fund last year with a 108% profit. NBG should be able to get a good price for these group of funds.
Bond yields are dropping b/c bond prices are going up. Long term, bond prices and stocks move in tandem with each other. Per Brandon Wendell, CMT:
A rise in bond buying will cause the prices to rise and interest rates to fall. This allows for further expansion and consumption in business and a bull market for stocks. Due to this relationship, bond prices and stock prices should move in tandem in the long-term, with mild interruptions in the relationship at turning points. In fact, THESE DIVERGENCES CAN BE USED AS AN INDICATION OF PROBABLE TURNS IN THE EQUITIES MARKET
Hello Brenda, the bonds are worth more since Greece has stabilized, that's were all the profit comes in. You might not be able to convince some people here but this is a repeat of what happened in Ireland and Portugal will be the next country people are keeping there eyes on. NBG should stay price range of a dollar or two until end of 2014 when they see employment pick up. Greece is building that pipeline but the shipping news that came out a couple of days ago will also help Greece, its all about expanding there port to become a main shipper. Then next year NBG should take off nicely, good luck