An overwhelming 92 per cent of global fund managers believe Greece cannot avoid a default. EU sovereign debt funding remains the biggest tail risk in investors’ minds, but the concern has lessened from its September highs, according a survey of 199 fund managers by Bank of America Merill Lynch Research. While 68 per cent of respondents considered it their top concern last month, only 61 per cent take that view in October.
“The survey shows investor consensus has priced in, or hopes for, an orderly default by Greece,” said Michael Hartnett, chief global equities strategist at BofA Merrill Lynch Research. “Europe appears back from the brink. But, it seems investors are waiting for the all clear from both Europe and emerging markets before committing cash,” Gary Baker, head of European equities strategy at BofA Merrill Lynch Research said in a release.
