10 May 2016 by lberuti
OTE ( Hellenic Telecommunications Organisation SA ), which is 40% owned and managed by Germany’s DT (Deutsche Telekom AG) reported first quarter numbers last Wednesday. It is fair to say that the 16% drop in net profit failed to trigger any excitement and the market reaction was fairly muted. What really got investors going is the positive tone at the Eurogroup meeting. Debt relief options are being discussed earlier than investors expected - even though the first bailout review has still not been concluded and is still a precondition -, and hopes are high that a conclusion could be reached in May. The positive tone in the Greek Government Bonds was enough to send OTE’s 5 year risk premium 35bps tighter at 431bps.