Redwood: Greek crisis claims more victims

The Greek debt swap deal has been sealed and markets have responded in relief but has it really been a success and should we start worrying about Portugal?

John Redwood, chairman of Evercore Pan-Asset's investment committee, gives his verdict: "Today's news that the Greek debt reduction has attracted the support of 85.8% of the bondholders has been well received in markets. The Greek state can now use the collective action clause to make all bonds held under Greek law convert to the new terms. "The Greek government will come close to hitting the IMF/EU targets for debt reduction through debt restructuring but bondholders are being made to pay some of the bill of Greek excess spending in recent years. "Each bondholder will receive 15% ...