Armstrong buys Greek bonds yielding 14.7%

Distinction Asset Management's Ana Armstrong has bought one-year Greek bonds yielding 14.7%, after Moody's downgraded the country's debt last month.

The manager of the £23m IM Distinction Diversified Real Return fund says she does not think there will be a default scenario or debt restructuring haircuts in the short term, making the 14.7% yield look very attractive. "We think European politicians are buying time - they have been talking for the last year but no real action has been taken to reduce the debt," she says. "However, the financing facilities of the EFSF and IMF are in place for Greece until 2013, so we think they have a good chance to lean on those financing opportunities." Armstrong bought Greek government bonds amo...