JP Morgan: Troika’s dismantlement…
In its latest report, JP Morgan declares it was taken aback by the extent of under-performance of the Greek bonds that was noted last week.
The American financial services company rushed to dispel fears of the markets, which are mainly associated with the Troika dismantlement scenarios, saying that greater financial flexibility will be positive for Greece and also for the markets.
JP Morgan attributes the underperformance of Greek bonds during the last days and especially during the last week to the following factors:
– A general decline in risk appetite.
– An article published by Reuters on August 4, according to which the EU is considering to replace the quarterly assessments of Greece by the troika with a six-month check by a special task force of the European Commission.
– Recent domestic macroeconomic data (retail sales, industrial production), which were quite weak.