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debt

Leverage loans. The next trigger?

Markets 25th January 2017

Inflation-Linked Bonds: A Safe-Haven In 2017 ?

Miguel Ángel Tramullas | Investment in public debt has traditionally been one of the most popular fixed income assets with both retail and institutional investors. It’s considered as a safe-haven. But in the last few years, it has lost part of its attraction because of lower interest rates which in some places are now in negative territory. To protect themselves, many countries like the US, Japan, the UK, France, Italy and also Spain have begun to issue inflation-linked bonds.

Greece debt

Interviews 5th January 2017

“What Is Clear Is That Greece Cannot Pay Its Debt And Will Never Pay It”

“What is clear is that Greece cannot pay its debt and will never pay it. There needs to be an acquittance. And European legislation does not allow for waivering of debt. What they are going to do now, and it should have been done seven years ago, is to modify the conditions in such a way that the debt will be practically waivered,” says Spanish economist Fernando Eguidazu, as he leaves his Foreign Office post of Secretary of State for the European Union.

greece 1

In Europe 1st January 2017

Another Spin Of The Wheel For Greece

Nick Malkoutzis via Macropolis | The Greek government expects the economy to grow by 2.7 percent and living, working and investing in Greece might seem a more enticing prospect. It is difficult, though, to be anything other than cautious about the prospects of such a turnaround. Firstly, there will have to be a dramatic improvement in several sectors of the economy for this kind of growth to be achieved.

bank spain

Spanish economy 7th November 2016

Should Spain’s Banks Worry About A Debt Bubble Burst?

The Bank of Spain’s (BoS) Financial Stability Report usually puts its finger on the problem when it highlights the main risks affecting the banking business. As well as low interest rates and the deterioriation in both Spanish and global economic prospects, the BoS’ latest report points to another factor which has not warranted so much attention: the decline in the prices of financial assets, both in fixed income securities and equities.

Public debt doesn't cease

Markets 25th October 2016

Living with a Debt Problem

J. L. M. Campuzano  (Spanish Banking Association) | Debt is essential for growth. And in fact, the Big Recession, which was sparked by the US subprime crisis, lies in the high level of debt generated during the previous decade known as the Great Moderation. So just as periods of expansion are favourable  for building up debt, this has to be adjusted during periods of recession (and depression).

Telefónica

Ibex, Markets 11th October 2016

Telefónica saves the day with 4-year and 15-year bond issues

It’s definitely not Telefónica finest hour. Problems with the possible listing of its UK affiliate O2 after the pound’s slump can be added to the fiasco with the IPO of its infrastructure subsidiary Telxius. The company is worried about having its rating cut and it doesn’t know how it can cut its massive 52 billion euros debt pile. But on Monday it returned to the debt market and successfully placed 2 billion euros in 4-year and 15-year bonds.

Deutsche Boerse

World economy 16th September 2016

What’s Behind The Uptick In The Long-Term Debt Rates?

The recent uptick in long-term debt rates, with the German bund leading the way, is not only due to investors’ disappointment after the last ECB meeting. Experts highlight other factors such as the global economy’s slightly better-than-forecast performance and the expectations for a generalised round of fiscal stimuli in key economic areas. Public debt for financing this expansion would increase and this exerts upward pressure on the rate curve.