Friday October 31, 2014 Search
Weather | Athens
18o C
13o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Peripheral bank bond penalty vanishing as confidence returns

By Alastair Marsh

The penalty that banks in Europe’s most indebted nations pay to borrow compared with those from the richest economies fell to the lowest in four years amid growing confidence in the region’s economic recovery.

Lenders from Italy to Greece now pay 0.38 percentage points more yield than borrowers from core nations including France and Germany, down from a high of 4.38 percent reached in November 2011, according to Bank of America Merrill Lynch index data. The average yield on bonds issued by peripheral banks fell 56 basis points this quarter to a record 2.17 percent, the data show.

Bonds shunned by investors during Europe’s debt crisis returned to favor amid optimism Italy is emerging from recession and after Spain was upgraded by Moody’s Investors Service. A selloff in emerging market assets and the crisis in Ukraine failed to damp demand for peripheral debt, which was buoyed by European Central Bank President Mario Draghi’s pledge to keep interest rates low well into the economic recovery.

“Peripheral banks were paying substantial yields but they have been decreasing over the last months as investor sentiment has improved, with the recent upgrade of Spain a significant catalyst,” said Cristina Martinez, who helps oversee about 6 billion euros in fixed income at Ibercaja Gestion SGIIC SA in Zaragoza, Spain. “Also, the periphery is isolated from much of the trouble in eastern Europe while some core banks are not.”

Peripheral bank bonds are among the best performing corporate securities in Europe, returning 3.24 percent this quarter, according to Bank of America Merrill Lynch index data. That compares with 2.11 percent for notes issued by lenders in the region’s core and 2.25 for all financial debt in euros.

Intesa Sanpaolo SpA (ISP), Italy’s second-biggest bank, handed investors the best returns among financial investment-grade notes in euros, with the Milan-based lender’s 6.625 percent bonds due September 2023 returning 8.58 percent, according to Bloomberg bond index data. [Bloomberg]

ekathimerini.com , Friday March 28, 2014 (13:23)  
Greek retail sales rise for third month in a row
Germany’s 10-year bonds decline before euro-area inflation data
Cyprus’s Georgiades Bets on Economy for Irish-Style Bailout Exit
Power rates soared 60 pct in six years
Traffic accidents rise 1.3 pct in August, year-on-year
The number of traffic accidents in Greece that caused death or injury rose by 1.3 percent in August this year compared to the same month in 2013, figures released by the Hellenic Statistical...
New defense minister to be appointed without reshuffle
An announcement regarding the new defense minister replacing recently appointed European commissioner Dimitris Avramopoulos (photo) could be made on Friday, Kathimerini understands. Accordin...
Inside News
BASKETBALL
Obradovic watches Greens thrash his Fenerbahce
The second homecoming of former Panathinaikos coach Zeljko Obradovic, now at Fenerbahce, was not as emotional as last year’s, but it was certainly was the night of an emphatic triumph for th...
SOCCER
Berg returns to add spice to Panathinaikos´s Cup win
The second round of games for the group stage of the Greek Cup produced plenty of interesting games and results in midweek, but it still lags the upset potential that the knock-out stages of...
Inside Sports
COMMENTARY
The judiciary’s responsibility
The reform efforts over the past few years have begun to bear fruit. Greece has improved its standing in the World Bank’s Doing Business rankings, rising 48 positions from 2010 to 61st place...
EDITORIAL
Findings raise eyebrows
An investigation into money transferred to foreign banks by civil servants since 2010, when Greece’s brutal debt crisis erupted, has come up with some striking findings. The checks, which we...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Greek retail sales rise for third month in a row
2. Traffic accidents rise 1.3 pct in August, year-on-year
3. New defense minister to be appointed without reshuffle
4. Germany’s 10-year bonds decline before euro-area inflation data
5. Cyprus’s Georgiades Bets on Economy for Irish-Style Bailout Exit
6. Man shot dead, woman injured in Vathis square attack
more news
Today
This Week
1. Man shot dead, woman injured in Vathis square attack
2. Germany’s 10-year bonds decline before euro-area inflation data
3. Cyprus’s Georgiades Bets on Economy for Irish-Style Bailout Exit
4. New defense minister to be appointed without reshuffle
5. Traffic accidents rise 1.3 pct in August, year-on-year
6. Greek retail sales rise for third month in a row
Today
This Week
1. Austria’s creative bookkeeping beats Greece on secret debts
2. End of reason, end of humanity
3. Clean bill of health for Greek banks from stress tests
4. Samaras pledges action after flash floods in Athens
5. Eurobank, National Bank restructurings eliminate capital gap
6. Athens flood damage assessed, compensation payments to begin
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.