Wednesday April 1, 2015 Search
Weather | Athens
14o C
09o 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)  
Business sentiment in decline
Ministry headache over T-bills
Lafazanis reaches preliminary energy package deal in Russia
Bank recap cash can’t be used for other purposes
Finance Ministry officials to discuss talks progress as EU pushes for action
After several days of talks between representatives of Greece’s government and its creditors in Brussels on a proposed list of economic reforms, eurozone finance ministry officials are to di...
Trial of suspects in Salamina torture case starts
The trial of four men accused of torturing an Egyptian bakery worker on the island of Salamina in the summer of 2012 is to resume on April 30 after the victim, Walid Talb, and several witnes...
Inside News
BASKETBALL
AEK could get a wild card to the Euroleague
AEK shows capable of climbing as high as third in the Basket League, as its 16-point home win over third-placed Aris on Sunday confirmed it can challenge both Aris and PAOK to the first spot...
SOCCER
Cyprus soccer eyes reunion after 60-year divorce
Turkish Cypriot soccer officials on Monday vowed to press ahead with attempts to reunite with the Cyprus Football Association, (CFA), triggering a political storm on the ethnically-split isl...
Inside Sports
COMMENTARY
Amateur antics or overstepping the mark?
There are 149 plus two reasons why those who have been watching SYRIZA’s progress since its start cannot and never will be able to stomach the leftist party’s coalition with Independent Gree...
EDITORIAL
A pointless debate
Monday’s parliamentary debate between the country’s political leaders left a lot to be desired. There was no information whatsoever about the coalition government’s proposed reforms or the p...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. AEK could get a wild card to the Euroleague
2. Business sentiment in decline
3. Ministry headache over T-bills
4. Lafazanis reaches preliminary energy package deal in Russia
5. Bank recap cash can’t be used for other purposes
6. EIB said to have frozen funding
more news
Today
This Week
1. Amateur antics or overstepping the mark?
2. Parliamentary speaker prompts ND walkout, anger from PASOK, Potami
3. Investment guru Mark Mobius rules out Grexit, advises sell-offs
4. Greece, EU/IMF lenders end round of technical talks without deal
5. A pointless debate
6. Greek government proposes measures worth 3.7 bln
Today
This Week
1. Next Monday is D-Day for state funds
2. Eurogroup unlikely to be held soon to discuss Greek reforms
3. Moscow expects progress from Tsipras visit
4. Some more equal than others
5. Greece to present reforms by Monday, says gov't spokesman [Update]
6. Greece optimistic on deal with euro area next week
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2015, H KAΘHMEPINH All Rights Reserved.