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…
By Luis Arroyo, in Madrid | In this post of economistsview, by Economics professor Mark Thoma, there is a number of charts of several countries and their evolution post-financial crisis. The aim is to probe whether such crises leave temporary or permanent effects. Here I select the one about Spain, where we can see its GDP. In mid-1973, the first oil crisis came in and Spain’s GDP sort of missed its natural path, which never regained. Well, this is old news, many would say: during the…
MADRID | In the sector’s consolidated income statement, the Spanish Banking association AEB reported on Wednesday a net interest income of €50.725 billion, which is an increase by almost 2% of the amount reached in 2010 and maintains profitability levels over average total assets (ATA) at 2.23%, with just a one hundredth less difference. All with an evolution of ATA by 2.7% higher than those managed in 2010. EAB admitted, though, that the…
By Juan Pedro Marin Arrese, in Madrid | Big banks in Spain have entered the merger race purchasing former nationalised entities. This sudden shift from previous reluctance to get involved in rescue deals is seen by many observers as a move to fence off pressures to salvage Bankia. According to this view, there would be great concern in financial circles over an institution that seems too big both to fail and…
By Luis Arroyo, in Madrid | There is talk lately in the euro area about the capacity of our firewall, about what sort of volume it should reach in order to frighten the bond markets. This firewall is, of course, the European Financial Stability Facility, the current bailout fund to be replaced in 2013 by the European Stability Mechanism. German Chancellor Angela Merkel has surprised everyone by saying she is willing to…
By Carlos Díaz Guell, in Madrid | Activity levels had lately improved, in the private sector although productivity has since 2007 recorded a slowdown, as evidenced by lower growth in Gross Value Added (GVA) of companies, whose figures began to fall in that same year (6.6% versus 8% in 2006) and contracted in 2008 (-2.7%) to drop sharply in 2009 (-7.7%). In 2010 companies’ GVA recorded a recovery in produccion activity…
MADRID | Barclays analysts said in an investor note on Monday that further worsening in Spain’s case should be very limited, as government policies tackle the key problems with the right solutions, in spite of mistakes being made. Experts remained confident the financial sector has gained sufficient funding at least until 2015 after having taken advantage of the latest liquidity operation carried out by the European Central Bank. The report…
By Juan Pedro Marín Arrese, in Madrid | Once again Spain is riding the storm. The sharp reduction witnessed in risk premium over the last months is vanishing. A sharp budget deficit coupled with gloomy growth prospects and soaring unemployment rates are melting confidence down. Claims on a rather subdued debt position fail to impress markets. Fear that financial situation might end up in a plight is deeply ingrained. Worries…
LONDON | Asset manager company AXA Real Estate said Monday it signed 68 leases on behalf of its clients representing a total of 113,350 sqm of space across its Spanish portfolio in 2011. This marks an increase of around 90% compared to 2010, when 60,855 sqm of space was let across 42 leases. Of the 68 lettings, 23 representing 10,707 sqm, were new leases, while the remaining 45, accounting for 102,643 sq m of space, comprised lease…
By Juan Pedro Marín Arrese | Day after day, political scandals over public funds mishandling and utter corruption hold the front page. They severely undermine Spain’s reputation and call into question its ability to enforce a proper control of resources. Squandering taxpayers’ money in profligate and inefficient expenditure has become a firmly entrenched habit. Regional and local authorities openly challenge debt limits by piling up unpaid bills. Even early retirement benefits…