Greek bonds: the market’s gift to institutional investors in April

They have amazing He increases Trading volumes Greek bonds since its inception April. Demand for Greek bonds whether in the secondary market to individuals in their personal capacity And Institutional happened 30% increase From the beginning of April compared to March, while Greek (domestic) bond mutual funds received many inflows during this period.

the The basic reasons Is that Demand for the 5-year bond (After successful release for 10 years) Show it Greek titles are attractive Because they are one Excellent risk/reward ratio.

The fact that the Greek economy is facing a takeover investment grade (According to the statement of the Governor of the Bank of Greece) At the same time, Greek bonds (10 years) have produce more than 4% Which makes it attractive to both institutional portfolios and retail investors. After all, this was demonstrated by attracting the nearly €2 billion of term deposits that became guaranteed-return bond products over the past six quarters through banks.

Also read: Stournaras: We’re almost at the investment point

Also expect it International Monetary Fund to 2.6% growth in 2023 (nearly three times the eurozone weighted average return) In terms of interest rates, it appears to be a fairly reliable option that combines performance and low risk.

Most foreign houses increased their positions in Greek bonds after the March crisis, while Greek bonds were also “smart” propositions for their clients. With the exception of Societe Generale, which recently expressed its preference for Greek bonds over Italian bonds (arbitrage). Positions in Greek bonds and the rest of the “big players” in the markets such as JP Morgan, Morgan Stanley, Goldman Sachs, Deutsche Bank, UBS, Amundi, Blackrock, Pimco and others.

€1 billion inflows into mutual funds in the first quarter of 2023 and an increase in conditioning bonds.

For 12 consecutive quarters, inflows into mutual funds have been increasing

Mutual funds and alternative investments moved against the current March correction that shrank the stock market with a strong increase in their assets in the first quarter of 2023, according to ETH data. More specifically, total fund inflows during the first quarter of 2023 in mutual funds (UCITS) amounted to €996.5 million, continuing their upward trend for the twelfth consecutive quarter. Total capital inflows since April 2020 have exceeded 4.6 billion. euro.

Also read: International Monetary Fund: 2.6% growth for Greece in 2023 – inflation at 4%

Regarding the market pie for institutional investors, which amounted to 24.8 billion. 49.5% EUR for mutual funds, 31.9% for asset management, 17.9% for AEEAP (real estate portfolio companies) and 0.7% for alternative investments. The significant increase in assets was also noted in the AEEAP due to real estate acquisitions and in general an aggressive policy in real estate matters.

Increased assets in a/c bonds and increased market share due to banks

In mutual funds, the shift towards a/c bonds was evident, due to the complex collateralized bond products that banks offered to futures customers with which they guaranteed higher returns than future deposits. The composition of the mutual fund market by the end of the first quarter was 35% in bond funds, 23% in hybrid securities, 20% in fund of funds, 14% in equity funds, and 4% in composite securities. It should be noted that the assets in the conditioning accounts fell sharply during the multiple crises of March. Anyway, 14% of the total 25 billion. Assets close to the euro are a particularly low percentage for European data, with equity assets exceeding 30%.

Asset management companies

And as far as AEDAK is concerned, Eurobank Asset Management has the largest assets with more than 3 billion. assets and 130 mutual funds under management, followed by Alpha Asset Management with $2.31 billion. Euro assets, Piraeus Asset Management of about $2 billion. Euro assets and AEDAK insurance funds of 1.44 billion. Euro assets and two mutual funds under management. These 4 AEDAKs manage approximately 85% of Asset Management’s total assets

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