More managers have been taking out protection against sharp falls in equity prices than at any point since the global financial crisis in 2008, according to a new BAML survey.
It is less than 2% of eurozone GDP, but Greece's exit could have a contagion effect on eurozone members, say investors and commentators in London.
Money managers in the US are confident Greece’s default this week will not lead to contagion or impact the US Federal Reserve’s stance on raising interest rates.
Asian investors dismiss the prospect of a eurozone spillover from the Cyprus bailout, but see penalising depositors as a dangerous precedent that could spark bank runs in the bloc.
Fund managers see September’s ECB bond-buying pledge as a potential turning point, but concede that eurozone equities are still a tough sell to Asian investors.
Fixed income and balanced funds remain more popular, but low stock valuations offer tempting opportunities, says the CIO of the firm's global equity group.