The leading three rating agencies seem to be very myopic with regards to the United Kingdom and the United States. Would they saw through the branch on which they were sitting?, asks George Dorgan, investment portfolio manager.
Spanish president Mariano Rajoy’s reluctance is more than understandable because there is no assurances about the reach of the OMT operations, nor their effects. Moreover, Brussels has recanted more than once, already.
Corporate bond markets are still buoyant, according to CaixaBank analysts. Many firms, taking advantage of this renewed appetite for risk, have intensified the rate they issue debt.
Rating agencies keep Spain’s credit rating at investment grade. The stability of the United States’ debt market, threatened by the fiscal cliff.
Halting evictions for two years is playing well in the mortgage-backed bond market, said analysts at Link in Madrid. “During the last week, the price of these securities has seen very little volatility, even considering the spike suffered by the curve of yields on Spanish sovereign bonds.”
By CaixaBank research department | The adjustment taking place in real estate supply and demand is not trivial, particularly in such a heterogeneous and fragmented market as housing that is also subject to significant regulatory changes. However, a detailed analysis reveals that the sector’s adjustment is now closer to the end.
Iris Mir | Beyond who will be leading the country, there’s still a pending issue: How will they rule it. If prosperity have been attained, as numbers show, why not embracing political reform?, wonders Iris Mir.
LONDON | In spite of bad economic figures for the euro zone, more peripheral banks may be enjoying access again to wholesome market credit. Spain continues under the spotlight, though, and the situation could become rather difficult.
Madrid has many reasons to remain cautious on the merits of embarking itself on a no-return ticket to euro-assistance. It doesn’t know for sure the price to pay and the concrete benefits to be reaped.
Renewable energy subsidies could come under revision, as members of the European Commission have criticised their proliferation and lack of clear rules in the sector. Recent studies have noted the impact is increasing over the electricity industry.