IIF's Charles Dallara on the Greek Debt Deal

Earlier on CNBC, Charles Dallara--Managing Director of the Institute of International Finance--fielded questions on the recent deal over Greece's sovereign debt. Dallara emphasized that the deal was "voluntary." He expressed dissatisfaction with the use of collective action clauses, stating that they should have been written into the bonds at the time of issuance. He noted that sovereign bonds being issued in the present generally have collective action clauses written in. Dallara stated that it was important for investors to realize that investing in European sovereigns is not simply a "carry trade" but that it obviously carries an underlying level of risk. On other European countries managing to get their own debts written off, Dallara downplayed the outcome, stating that Greece's economy had unique distortions.