What happens after Grexit?

The markets are mostly taking the prospect of a Greek default in their stride, says Merryn Somerset Webb. But that's not to say it will stay that way.

Are you ready? Have you thought about what happens if Greece defaults?And, while one doesn't necessarily lead to the other, if that default leads sharply on to a Greek exit, or Grexit, from the euro? Most commentators will tell you that you don't need to, because the risk of Grexit has been so high for so long that everyone is prepared for it.

The banks have cut their exposure to Greek bonds. Investors have sold out of Greek stocks. The European Central Banks has plans in place to prevent contagion. Everyone with money in a Greek bank and half a brain has moved it to another country. The result? Bond yields on some southern European bonds have risen, and the MSCI EMU index (which tracks European stockmarkets) is down 8% from its peak earlier in the year.

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Merryn Somerset Webb

Merryn Somerset Webb started her career in Tokyo at public broadcaster NHK before becoming a Japanese equity broker at what was then Warburgs. She went on to work at SBC and UBS without moving from her desk in Kamiyacho (it was the age of mergers).

After five years in Japan she returned to work in the UK at Paribas. This soon became BNP Paribas. Again, no desk move was required. On leaving the City, Merryn helped The Week magazine with its City pages before becoming the launch editor of MoneyWeek in 2000 and taking on columns first in the Sunday Times and then in 2009 in the Financial Times

Twenty years on, MoneyWeek is the best-selling financial magazine in the UK. Merryn was its Editor in Chief until 2022. She is now a senior columnist at Bloomberg and host of the Merryn Talks Money podcast -  but still writes for Moneyweek monthly. 

Merryn is also is a non executive director of two investment trusts – BlackRock Throgmorton, and the Murray Income Investment Trust.