Greek bondholders are preparing to lose as much as 60 percent oftheir investments as European leaders try to impose a solution thatreduces the nation's debt burden by enough to end the debtcrisis.

“Everyone is coming to the conclusion that a much deeperrestructuring is needed to make Greece in any way sustainable,”said Emiel van den Heiligenberg, chief investment officer of globalbalanced solutions at BNP Investment Partners in London, whichoversees about $742 billion. “If the stock of debt doesn'tdiminish, then the problems are going to be bigger and bigger andGreece will require rescue package after rescue package.”

Greek 10-year bonds yielded 23.98 percent at 8:31 a.m. Londontime, with the price on the securities at 37.40 percent of faceamount. The rate was 2,186 basis points, or 21.86 percentagepoints, more than benchmark German bunds and compares with a yieldof 11.59 percent for similar-maturity Portuguese debt and 5.87percent for Italian bonds.