Almost all analysts have interpreted Mario Draghi’s comments about the “legality” of buying bonds with a duration of less than three years as a preview of what the ECB iwill announce on Sept. 6. JP Morgan’s Executive Director of Global Equity Sales Hugo Anaya believes such statements “are within the new idea of the ECB to intervene in the short term, justifying it by saying that it’s helping the transmission…
From stable to negative. Moody’s new rating for Europe puts the continent on notice and made some European stock markets slip on Tuesday. According to the agency, Germany, France, the UK and the Netherlands could stop fulfilling their obligations to the EU if the crisis worsens. These four countries account for about 45% of the EU’s budget revenue. “The creditworthiness of these member states is highly correlated, as they are…
China is willing to help, but everyone has limits. Premier Wen Jiabao told visiting German Chancellor Angela Merkel at a state visit in Beijing on Thursday that Beijing plans to continue buying European sovereign debt, the strongest sign of support for its biggest trading partner in months, although it urged further measures to be taken. “The European debt crisis has continued to worsen, giving rise to serious concerns in the…
By CaixaBank research team, in Barcelona | The worsening climate in peripheral Europe has affected the corporate bond markets. Whereas, during the previous months, this market stood out for its remarkable ability to resist the adversities of the euro area crisis (from the point of view of issuances and the extent of capital flows), in May investor mood and the issuance of corporate bonds had been fully infected. In addition,…
By Luis Martí, in Madrid | Amid the recent flurry of proposals for restructuring of the euro zone and opinions on its decomposition, seasoned with all sorts of half truths, two reports –one of the European Commission, by order of Parliament, and one of the Council of Economic Experts which advises the German government– have seriously dealt with the viability of Eurobond-based-solutions. The Commission's report was published late 2011 as a…
By Luis Arroyo, in Madrid | Please, bear with me. First, I took a graph from the Noah Smith’s blog, in which everyone can see that venture capital has almost passed away since the 2000 crisis. The chart shows the value of equity shares, and each line is a selection made under a different approach. The 1990’s were the golden age of risk, people loved risk and the VC funding…
NEW YORK | It’s been a bad day for Spain in Wall Street’s most read media. The tepid bond auction is to blame: Spain sold a total of $3.43 billion in bonds with maturities between 2015 and 2020, near the bottom of its target volume. Spain expected to sell between $3,28 billion and a planned maximum of $4,6 billion. There was a weaker demand and therefore it had to pay…
LONDON | For all the mayhem some peripheral countries of the euro zone are meant to be causing nowadays, a few investor notes circulate throughout the City with eager eyes looking into opportunities in the European Union. For instance, at investing house Fidelity, analysts pondering about equity income say that the euro region’s debt crisis appears to have gone into a period of remission after the combined impact of a…
NEW YORK | US media coverage of Spanish general strike was scarce in the morning, and increased during the day, never making the biggest headline. The online edition of major generalist or business newspaper didn’t include it among their main subjects, or did only briefly. NYT kept it in a low position. WSJ reported on it only on its World section, and the strike wasn’t even the leading headline there….
NEW YORK | Yields on Greek bonds are the highest ever. Spanish and Italians are pretty good also. If they pay back, it could be a very sweet deal for every savvy investor. And private assets are on sale too. In 2010, Apollo Global Management bought a portfolio of distressed property loans owned by Credit Suisse for about $1.2 billion, a roughly 50 percent discount to the face value, according…