Pimco Says 30% Chance of a Greek Exit Has It Keeping Powder Dry

There’s a 30 percent chance Greece ends up dropping out of the euro area by accident and if it does then that might make Italian and Spanish debt a good buy, according to the manager of the world’s biggest bond fund.

Pacific Investment Management Co.’s central scenario is that Greece will muddle through and keep using Europe’s common currency. There’s a possibility of a debt payment being missed unintentionally and that would cause a blowout in bond spreads for the region’s other highly indebted nations, Mihir Worah told reporters in Sydney on Thursday. Pimco has reduced its bets on Italy and Spain to guard against that risk.