...think that the EU rescue program is "backfiring".
“We think it is too risky to buy Greece and Portugal,” said the head of one of the largest US asset managers. “The chance of restructuring is too high. When there is default risk, you scale your exposure differently. There is no value. But even if there was value, our investors still don’t want us to invest.”
Ramin Toloui, a senior portfolio manager at Pimco, said the European Central Bank’s decision to buy government debt could be backfiring. Instead of encouraging private investors to keep their government debt, the programme might be leading to more sales, he said.
“The risk is that investors are using the ECB as a vehicle to exit their positions,” he said.
Read more: http://www.businessinsider.com/everyones-still-selling-piig-debt-as-pimco-warns-ecb-intervention-may-be-backfiring-2010-5#ixzz0o6Ss4NeD