The Greek economy experienced a significant influx of 5 billion euros in Greek shares and bonds following the upgrade in the credit rating outlook, as reported by the Bank of Greece Economic Bulletin.
An analysis conducted on “The Investment Grade and Funds’ Portfolio Allocation in Greek Assets” revealed that the increase in bond and share placements totaled €5 billion between Q4 2022 and Q3 2023, with €2.9 billion in shares and €2.1 billion in bonds.
Funds reacted to the positive outlook change by enhancing their holdings of Greek sovereign bonds, which accounted for 80% of the decrease in bond spreads. This signifies the influence of credit ratings on investment funds’ decisions and emphasizes the importance of ongoing reforms to boost rating upgrades and demand for Greek bonds.