Capital markets have had time to prepare for Greek default

Private capital has had ample time to prepare for a Greek default, though there will probably be some "readjustment" in markets if it happens, the head of PIMCO, the world's biggest bond fund, said on Thursday.

"Is the risk being rightly priced in? We have had three years to prepare. This has been a long-running soap opera for the last three years," said PIMCO Chief Executive Officer Douglas Hodge.

"Private capital has had ample opportunity to position itself for Greece defaulting. There will probably be some readjustment," he told the annual conference of the International Organisation of Securities Commissions in London.

He said he hoped Greece would stay in the euro but added that the political consequences of a Greek exit would be greater than the economic ones for the whole of Europe.

"Today the market is fairly sanguine about the crisis."