M&G's Leaviss: Five things we have learnt from Greek 'default'

THE GREEK 'DEFAULT'

M&G's bond star Jim Leaviss, manager of a range of portfolios at the group, said the Greek 'default' witnessed this week has brought home some harsh truths for bond investors about the real value of their holdings during a crisis.

Leaviss, who runs funds including the £942m M&G Gilt & Fixed Interest Income fund, as well as the UK Inflation Linked Corporate Bond fund, highlighted five lessons debt investors could take from the crisis, following a week which saw the effective default of Greece fail to trigger CDS payouts.   1. The price charged by central banks for saving the world is seniority. The ECB did not take haircuts on the Greek debt it had bought as part of its SMP bond buying programme. Did you spot the clause in your bond documents that said that you were buying the subordinate tranche of the governme...