Divyang Shah, Senior IFR Strategist
We have had a few headlines of late related to yet more deadlines with the IMF suggesting that it wants the funding gap filled by end-July while the eurozone in turn is giving Greece 3-days to reassure the market that it can deliver on bailout conditions.
There are going to be a lot of headlines for markets to digest but we know where this one is heading, as despite talk of a Greek exit, the road seems to be leading toward an eventual OSI.
For private sector holders of GGBs this is not something to fear, as an OSI would actually improve the debt situation and make the PSI-ed bonds more appealing.
An OSI seems most likely to be more fiercely discussed once the German elections are out of the way.
