The Greek debt bailout is similar to the subprime crisis in the US and likely will send global investors looking for safety, Pimco's Mohamed El-Erian told CNBC.
While Greece's request to the International Monetary Fund that the bailout plan be activated helped calm world markets for the moment, El-Erian, CEO of the world's largest bond fund, said the true ramifications have yet to be felt.
"How long will it take markets to worry more about contagion risk?" he asked during an interview hours after an upward revision of Greek's deficit and a credit downgrade sent shockwaves through the European Union.
