public debt

Public debt doesn't cease

Public Debt: I Can’t Believe We Are Still There

Francesco Saraceno | The crisis is supposedly over, as the European economy started growing again. But this matters little to those who, as soon as things got slightly better, turned to their old obsession: Debt. Bear in mind, not private debt, that seems to have disappeared from the radars. No, what seems to keep policy makers and pundits awake at night is ugly public debt, the source of all troubles (past, present and future).

Leverage loans. The next trigger?

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.

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Spanish Public Debt Reaches One Trillion

MADRID | By Fernando G. Urbaneja | Spanish households and businesses were the most indebted at the beginning of the crisis (80% of the total), but now their debt is getting smaller in a systematic and decided way. The same cannot be said of the State, which keeps increasing its public debt with equal zeal (or even more) and has gone from less than 20% at the beginning of the crisis to 36% this week (and still growing).

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Lights and shades of Rajoy’s two years as Spain’s president

MADRID | By Julia Pastor | Two years, a €100 billion banking bailout, and a comprehensive package of structural reforms later, Spain’s president, Mariano Rajoy, celebrated on Wednesday his 2011 electoral victory. These years’ balance is some sort of bittersweet taste. The country’s external perception has improved, but unemployment and public debt numbers are still a heavy burden.

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Spain’s interest payments on public debt are lower than in the 1990s

By CaixaBank research team, in Barcelona | Tensions in Europe’s sovereign debt markets have grown again, especially in the so-called peripheral economies. Increasing rumours regarding Greek’s possible exit from the euro area have played a significant part. In Spain, this escalation has been sharpened by further capital requirements for banks and the increasingly widespread doubts as to whether the fiscal deficit targets will be met, particularly after the upward revision…


The US cannot bury its head in the sand for much longer

LONDON | Another day spent with the euro area teasing markets’ anxieties, another voice in the background alerting of a wall of trouble building up on the other side of the Atlantic. The US budget deficit is reaching a size many feel uncomfortable about: in Wednesday’s fundamentals briefing, Legal & General Investment LGIM suggested that the outlook for US debt is actually worse than most people currently believe. “Not many…

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“The financial system won’t generate again wealth, jobs like in the last 30 years”

By Tania Suárez, in Madrid | Manuel Sousa Andrade is head of investment services and trading at Saxo Bank. Sousa proposes that if we want to get out of the current crisis, it’s necessary to get rid of the wrongs of the past and to change investors’ habits. Regarding the public debt, you say that investors want to ‘protect themselves’ and that’s why they ask for ever higher yields. Can…

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“EU public debt rate is lower than in the US or Japan”

MADRID | If there is something we all can agree on is that there is too much debt worldwide. We can also agree on the fact that it is the developed countries that are suffer this high level of debt, after more than ten years of excesses. This is the opinion of Jose Luis Martínez Campuzano, chief strategist at Citi inSpain, who has expressed his views for Consenso del Mercado. “When…