Statement: Robert Senz, CIO (Global Fixed Income) at Raiffeisen Capital Management:
Above all, Greece could be politically divisive for Europe

The further downgrading of Greece from B to CCC by Standard & Poor’s has played directly into the hands of anti-European parties. They have already begun capitalising on this to further inflame sentiment against Greece and the European Union. This has far more divisive potential than the economic difficulties being faced by Greece, which could be solved by the Union relatively easily in the form of transfer payments. If the anti-Europe movement gains momentum, especially in Germany, this will put the EU to a severe test. And this would toll the knell for the experiment of a currency union that is not a transfer union.

What does this mean for investors?
Under these conditions, bond investors should put their money in fundamentally solid countries (such as Norway, Malaysia and Switzerland) and include countries that have seen significant financial improvement (such as Mexico, Turkey and Russia) in their portfolios. Special funds have recently been developed in this segment and are designed to achieve an optimal risk/return ratio and to provide investors with an opportunity to profit from the restructuring of the public budgets of certain countries.