BONDS

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The (bonds) Hunger Games

MADRID | The Corner | In the next few days demand for Spanish bonds is expected to grow, since Spanish debt auctions will be held and European CPI data showing that prices remain very low will be released.


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70% of Stoxx600 firms see profit hikes

MADRID | The Corner | Reporting season in Europe is beginning. Over half the Stoxx600 companies that already showed results surpassed expectations. Profits grew for 70% of this businesses and the average rise was of 9%.  European markets’ upward trend being less mature than American’s may point at a EuroStoxx higher appreciation potential. It gains importance as performance results keep looking up and prices context allows EZ companies to rise EBITDA margin from current 15.2% to prior years levels (above 16%).


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After landmark return in April, Greece prepares to tap bond markets again

ATHENS | By MacroPolis | After tapping markets in April for the first time in four years, Greece is considering another bond transaction, which could take place as early as next week, according to reports. The troika delegation is scheduled to return to Athens on July 9 and the country’s goal is for the operation to take place as early as possible to avoid any negative repercussions during the inspection by Greece’s lenders affecting investor interest or the yield. 


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Market chatter: bonds await ECB’s move

MADRID | By Julia Pastor | European sovereign bonds markets have put some champagne bottles on the fridge for next neek in the case the ECB decides to inject some stimulus on the euro zone at last. Without setting a precedent, president Mario Draghi and Bundesbank’s head Jens Weidmann seem to bring their positions over the mechanism closer. This change of direction led Spanish 10-years bonds to 2005’s minimum yields of 3.27% and was behind the successful issue of Italian public Treasury, which sold €2.5 bn at also very low prices. Just Greece’s bonds are trending downwards.

 


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ECB should start new strategy buying Portuguese bonds (JP Morgan)

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…


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Moody’s warn for Europe and Draghi’s new hint

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…


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China urges Europe to work on its debt

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…


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Issuances slow up in the corporate bond markets under euro pressures

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,…


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US financial press put Spain under the spotlight

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…


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Fidelity: investors should look again into equity of European companies

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…