Sure, the eurodrama is a fact. But there is a growing interest about investing in the peripheral Europe. Morgan Stanley has conducted a survey among investment managers and 38% of them expect the CDS of the Spanish sovereign bond to be between 150-200bp over the next 12 months.
Cyprus bailout effects: Eurozone integration remains vulnerable
With the great amount of debate, chatter, and serious analysis about the EU’s financial rescue of Cyprus from insolvency and potential departure from the eurozone, many wonder if the EU policy emerging from the Cypriot “bail out” will have a lasting impact on the political and economic integration of the Europe. In John Sydney Hopkins view, the EU rescue of Cyprus will be seen as a milestone event with a lasting impact on the EU’s ability to manage the process of integration.
“Weidmann threatened us and lost,” says Santander’s Guillermo de la Dehesa
Crystal-clear answers for the foggiest question: why is the euro zone in such dire state? Banco Santander’s board member Guillermo de la Dehesa speaks of a self-inflicted crisis, the resignation cycle at the Bundesbank and how to reform the European Central Bank.
CDS relax over Ireland, Portugal and Spain
Where there is the European Central Bank’s full capacity of purchasing short-term State debt, there is hope. Even the primary market has opened, although by understandably timid measures, for southern euro zone debt issuers at a sub-sovereign level like State agencies and autonomous regions. The financial City of Madrid expects this window of opportunity to [...]
What an unfortunately insufficient difference an ECB word makes
LONDON/MADRID | President Mariano Rajoy should manage to take this week a breath, although it will probably feel too weak. A simple look at the curve of Spain’s government debt now shows a steep upward gap between the internal rate of return of two-year bonds and the cost of the medium and long-term credit for [...]
European banks flee Greece
José Luis Marco, CAPITAL MADRID | Although Spanish banks have little direct exposure in Greece, the country over which hangs the euro zone exclusion threat, something different happens with several European banks: they have a direct interest in the Hellenic country both with their branches in the country and with the assumption of Greek sovereign [...]
The Italian elephant in the euro room
MADRID | Unmistakably, the reflection that the Italian economic indicators are mirroring should look very familiar to Spanish analysts. The slowdown wave is reaching core Europe too, by the way, as the Organisation for Economic Co-operation and Development reported this week: the European economies, whether using the ill-established common currency or one on their own, [...]
Thursday’s charts: dumb bets
Luis Arroyo, in Madrid | Greece was in free fall mode when at the European Central Bank they had the funny idea of pushing the country …downwards. The ECB said it had frozen all operations with Greek banks, which already are suffering a killing capital drain: “Central bank head George Provopoulos told Papoulias that Greeks have withdrawn as [...]
Large amounts of corporate bonds issued in the first quarter of 2012
By La Caixa research team, in Barcelona | In the last months, activity in the corporate bond markets continued to speed up. During the first few sessions, the combination of the ECB’s extensive liquidity and doubts regarding Greece limited volumes in the primary and secondary markets. But the gradual improvement in the climate regarding sovereign and [...]
Spanish Treasury seduces investors, yields fall under 1%
By Tania Suárez, in Madrid | The Spanish Treasury keeps reducing the yield of its public auctions and demand keeps increasing: 5.9 times the offer (almost €15bn). Just a few hours after Europe has given the green light to Greece’s rescue package, the Spanish Treasury has sold €2,5bn –the maximum expected, at 3 and 6 months [...]
