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.
Views are divided on whether Greece will exit the euro and the bloc will implode. Asia may be better placed than in 2008, but recovery would take longer.
Greece has to exit the bloc before structural reforms can take place, says lecturer Robert Pozen. He sees Spain as the big worry, but outlines his solution.
Last week's move by the ECB was encouraging, says Skandia Investment Group's head of asset allocation. The firm may seek a Singapore presence and retail licence.