Pimco’s Andrew Balls talks about the European sovereign debt crisis

Balls says support packages "might just provide the opportunity for conservative investors to get out"

The European rescue package has provided an out for long-term investors that had underestimated credit risk in their European sovereign holdings, PIMCO managing director and head of European portfolio management Andrew Balls said.

"There has clearly been a conservative investor base in government bonds, pension funds and other investors that wanted a conservative allocation to government bonds... but have not fully taken into account the credit risk involved in countries like Greece and others