This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Market Vectors’ Fran Rodilosso On Greek Upgrade And Corporate Bond Opportunities During Sovereign Troubles

Standard & Poor’s recently announced its decision to upgrade Greek sovereign debt by six notches, a significant move and further support for the rally in global credit markets that has been underway since the summer, according to Fran Rodilosso, fixed income portfolio manager at Market Vectors ETFs.

“Concerns about a 'Grexit' (possible Greek Exit from Eurozone), which flared up in May, interfered with the credit rally that had been under way since Q4 2011,” said Rodilosso. “Since then, U.S. elections, the fiscal cliff, and concerns over China's slowing growth and its change in leadership have also been issues that weighed on market sentiment. But Greece, as insignificant as it might be as a standalone economy, has remained a potent symbol of the Eurozone's failures and its potential for unraveling, and held an outsized role as a significant driver of global sentiment.”

“As for S&P’s upgrade, it makes sense to me since it is based on the depth of support on display from Greece's neighbors,” added Rodilosso. “But the country's absolute level of debt, even as projected out 10 years, is still frightening in my view.”

“While we do not focus on the Greek sovereign paper in any of our ETFs, we have still noted that there may be opportunities to be found among corporate bonds,” he continued. “OTE (Hellenic Telecom), which we own in our passive Market Vectors International High Yield Bond ETF (IHY), is one such issuance. The OTE story was arguably a compelling one even in a ‘Grexit’ scenario as it has disclosed significant and profitable assets outside Greece, loans from Greek banks that might be ‘drachma-ized’ in an exit scenario, a relatively strong foreign shareholder base, and a domestic business unit that has held up well. OTE's 2014 bonds have recovered in price by approximately 65 percent since May, when they traded at 60 cents on the dollar.”

1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs