Investors expect Greek debt default: survey (by Polya Lesova)

LONDON (MarketWatch) -- An overwhelming majority of global investors expect the Greek government to default on its debt obligations, according to the Bank of America Merrill Lynch October survey of fund managers released on Wednesday. Ninety-two percent of the 199 respondents to the survey believe that Greece cannot avoid default, while seven out of 10 respondents forecast a default by April 2012. Still, investors appear to be less worried about sovereign risk than a month ago and less pessimistic about global growth, according to the survey's findings. "The survey shows investor consensus has priced in, or hopes for, an orderly default by Greece," said Michael Hartnett, chief global equities strategist at BofA Merrill Lynch Research, in a statement.