Fitch: One in five European managers expect Greek departure

7 August 2012 | By Gary Jackson

More than one-fifth of European fixed-income investors expect at least one country to leave the eurozone, research by Fitch Ratings shows.

The ratings agency’s quarterly investors survey reveals that 21 per cent of respondents think Greece and possibly one or two more of the bloc’s 17 members will depart the currency union as it attempts to solve its ongoing debt problem.

Most fixed-income managers believe the eurozone will remain in tact, with 33 per cent expecting a move towards fiscal union and 31 per cent predicting a ‘muddle through’ solution to the crisis.

In addition, 9 per cent expect the eurozone to be hit by multiple sovereign defaults but to retain all its members while just 5 per cent foresee a full-scale break-up.

“These responses more or less echo those given in the October 2011 survey,” Fitch says. “This indicates that despite the volatility over the last 10 months, investors are taking a long-term view and showing faith in the European project.”

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