Why Greek bonds are the unlikely 'best in class' assets to hold

Most fixed income has performed well in 2019 aided by the change in outlook from many central banks around the world and the gross redemption yield (GRY) on many bonds have fallen to very low or negative levels.

Despite that, total returns from bond markets (which is different from the GRY) have been very healthy as demand for the asset class continues to increase.  We continue to favour government bond markets where the fundamentals are changing either in terms of monetary policy or from the point of view of their credit. "Worrying" debt trends: Is Italy the new Greece? One market that fits both categories is the Greek bond market in the eurozone.  Greece, the former 'basket case' of eurozone debt has been changing slowly with the result that the outlook is as positive a credit story a...