PIMCO Sells Greece and Portugal Debt

The Financial Times reports:

Pimco has sold all its holdings of Greek and Portuguese sovereign debt, one such person said.

In some cases, leading money managers have come under pressure from their investors to change their guidelines to rule out purchases of the sovereign debt of peripheral eurozone countries.

“We think it is too risky to buy Greece and Portugal,” said the head of one of the largest US asset managers. “The chance of restructuring is too high. When there is default risk, you scale your exposure differently. There is no value. But even if there was value, our investors still don’t want us to invest.”

Lending money to socialists carries risk.