risk premium

Europa del sur

Can Spain become EU’s periphery locomotive?

MADRID | By Julia Pastor | Spanish PM Mariano Rajoy started campaigning for the upcoming European elections on Tuesday. In a radio interview he announced that the country’s unemployment rate has started reversing since job destruction is slowering. The fall of the country’s risk premium and 10-year bonds yields are crucial for companies financing abroad, he recalled. Even though Brussels forecasts are just estimates, they do support the idea that Spain could become the driver of peripheral EU with a growth over Italy, Portugal and even France.

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Spain sees sovereign debt interests go down by 50%

MADRID | By Julia Pastor | Spanish public Treasury will have its weekly appointment with investors on Thursday. This time the country will issue bonds with maturities of 5, 10 and 12 years, respectively. There would be nothing unusual about it if international investors’ appetite for the Spanish sovereign debt were usual. However, interests in national treasuries currently reach levels of the 90’s when, before euro’s introduction, those bought Spain’s debt during seven quarters without a break. The institution even considers the possibility of creating 50 years bonds. At this moment, the Spanish 10 years bonds yield under 3.25%. As the summer comes the benchmark debt could stand at around 3%.

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Ibex 35 Euphoric Thanks to Spanish Risk Premium’s Fall

MADRID | By Francisco López | The risk premium has moved from being a huge torment for Spanish decision-makers, to making headlines showing a recovery of the international confidence in Spain’s economy. The interest rate of the Spanish 10-year bond is at its lowest since 2009, the differential with Germany is around 190 basis points and Ibex 35 widely exceeds 10,000 points.

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Will Spain’s risk premium let the government sleep at last?

MADRID| By Julia Pastor | Spain’s credit quality and solvency is increasingly improving. The country’s risk premium closed at 219 basis points on Tuesday to its lowest level since June of 2012, and under Italy’s. Also Spanish 10-years bonds neared 4% yield, more than double than the German ones. Public debt investors do not have much better options.

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“The Spanish risk premium may go below 250 basis points before the end of 2013”

MADRID | By Tania Suárez | Daniel Álvarez is analyst at XTB. In a conversation with The Corner, he forecast a “positive scenario” in which “the Spanish risk premium may go even below 250 basis points before the end of the year.” Also, he claimed, “if Europe does its homework, the eurozone markets will become a very good investment opportunity.”


Where Spain’s risk premium should be

MADRID | The cost excess the Spanish government pays for credit from the capital markets in comparison with Germany, which is considered the benchmark in confidence matters in the sovereign bond sector, has fallen since last week's euro summit. The main two reasons seem to be that the plan for financial aid for Spain to recapitalise its banks was somehow agreed by the euro authorities, and the possibility that the…