28 jun: Når lav risiko giver højt afkast
17 jul: Test
11-07-2012 12:45:00

Spain Bank Subordinated Bondholders Trying to Sell in Illiquid Market

Relateret indhold

-- Spanish banks' subordinated bonds under pressure after hints at forced losses

-- Price moves only moderate given ongoing concern over Spanish bank bailouts

-- Sellers struggle to find buyers in low trading volumes

By Serena Ruffoni and Art Patnaude

Investors left holding positions in Spanish subordinated bonds were trying to sell them Wednesday after the Spanish government hinted these type of instruments might be forced to take losses.

Late Tuesday it emerged that investors holding any equity or hybrid capital instruments issued by Spanish banks that might need a euro-zone bailout could see their investments completely wiped out.

Conservative-type bondholders--like banks, funds and Asian investors--were left trying to exit their positions in weaker Spanish banks, but with few investors interested in buying they were finding it hard to sell, bond traders said.

The bond prices didn't collapse on the news, with these bonds having been dumped by investors for some time, as the precedent set by Irish banks in 2010 made investors more aware of the risk associated with subordinated debt.

However, "unlike in Ireland, the move to force losses on junior bondholders is a significantly more contentious issue in Spain where retail customers make up a large proportion of the investor base," said Daiwa Capital Markets credit analyst Michael Symonds.

Bondholders at Spain's larger banks--Banco Santander S.A. (SAN.MC), Banco Bilbao Vizcaya Argentaria S.A. (BBVA.MC) and CaixaBank S.A. (CABK.MC)--won't likely be affected by the change as they aren't likely to take part in the bailout. But smaller banks will be impacted, with trading on their bonds over the last months evidence of these concerns.

"Expect subordinated peripheral debt to trade lower as there had been some expectations that it would be treated with compassion because of the retail bias," said Investec fixed-income analysts Elisabeth Afseth and Brian Barry in a note.

Bankia's subordinated bonds in particular has been singled out, as it was the first bank to ask the Spanish government for aid, traders said.

Other banks, like Banco Sabadell and Banco Popular, were in more of a grey area, as it remains uncertain whether they will be strong enough to avoid requesting state aid.

In the meantime, investors are playing safe, trying to dump these bonds when they can.

"The buyers left are hedge funds and sophisticated investors, which have a precise bet on what's going to happen...Otherwise there is very low buying appetite," one trader said.

For instance, Banco Sabadell's 6.25% subordinated bond maturing in April 2020 has seen its yield soar from around 7.2% around this time last year to 12.25% on June 29, according to data-provider Tradeweb.

However, trading on the bonds remains thin, according to traders, as the divergence between prices asked to hold these bonds diverges with expectations of the sellers. Those wanting to sell can't necessarily find a buyer.

Write to Serena Ruffoni at serena.ruffoni@dowjones.com and Art Patnaude at art.patnaude@dowjones.com

(END) Dow Jones Newswires

July 11, 2012 06:45 ET (10:45 GMT)

Copyright (c) 2012 Dow Jones & Company, Inc.

Opret kommentar

Relateret debat

  • 1 uge
  • 1 måned
  • 1 År
Ingen indlæg

Fondsbørsmeddelelser

Mærsk/Sydbank: Drilling-salg er realistisk - ikke nødvendigvis elegant

23-01-2018 13:17:37
Det giver fin mening, at A.P. Møller Holding sammen med en ukendt industripartner skulle være tæt på at købe borerigselskabet Maersk Drilling af A.P. Møller-Mærsk.Ifølge Berlingske Business, der har talt med flere anonyme kilder, skulle handlen have en værdi af over 27 mia. kr.- Til trods for stigende oliepriser er drilling stadig et presset marked. Der er ingen af Mærsks konkurrenter, der har pen..

Aktier/åbning: Tryg går til bunds i positivt marked - Mærsk stiger

23-01-2018 09:24:18
Tryg halter tirsdag morgen lidt efter det generelle marked, efter at forsikringskoncernen har skudt regnskabssæsonen ind med tal for fjerde kvartal, der peger i flere retninger.Målt på det forsikringstekniske resultat slog Tryg akkurat analytikerforventningerne. Til gengæld haltede bundlinjen lidt efter forventningerne blandt andet som følge af en lidt skuffende investeringsafkast. Også bruttopræm..

Aktier/tendens: Tryg kommer med lunkent regnskab i varmt marked

23-01-2018 08:44:18
Mens tirsdagens åbning tegner positiv, så kan Tryg halte lidt efter det generelle marked, efter at forsikringskoncernen har skudt regnskabssæsonen ind med tal for fjerde kvartal, der peger i flere retninger.Målt på det forsikringstekniske resultat slog Tryg akkurat analytikerforventningerne. Til gengæld haltede bundlinjen lidt efter forventningerne blandt andet som følge af en lidt skuffende inves..

Mest læste nyheder

  • 24 timer
  • 48 timer
  • 1 uge
1
Genmab: Partner melder om vækst i Darzalex-salg på 86 pct.
2
Danske Bank/RBC: Konsensus for udlodninger efter 2018 er for høje
3
Aktier/middag: Salgsrygter sender Mærsk til tops i positivt marked
4
Torm sætter tal på 2017 og udnytter optioner på to skibe - NY
5
Aktier/åbning: Tryg går til bunds i positivt marked - Mærsk stiger

Relaterede aktiekurser

Køb- og salgsanbefalinger

  • Trend
  • Pengemaskinen

Copyright Euroinvestor A/S 2018  Disclaimer Privatlivspolitik
Aktieinformation leveres af Interactive Data.
Data er forsinket 15-20 minutter iht. de enkelte børsers regler om videredistribution.
 
23. januar 2018 16:38:10
(UTC+01:00) Brussels, Copenhagen, Madrid, Paris
Version: LiveBranchBuild_20180122.2 - EUROWEB4 - 2018-01-23 16:38:10 - 2018-01-23 16:38:10 - 1 - Website: OKAY