Foreigners Are Fleeing The Spanish Bond Markets
Mike “Mish” Shedlock
- Concerns Mount that ECB Bond-Buying Program Is Illegal; Concerns? What Concerns?
- Foreigners Dump €89.6 Billion Spanish Bonds; Spanish Bank Exposure Increases by €108.8 Billion
- US CEOs Sharply Reduce Expectations for Economic Outlook, Hiring; Third Largest Plunge in 6-Month Expectations in History; Reflections On “Uncertainty”
European banks are ostensible to be deleveraging. By now, many comprehend they are headed a conflicting direction. In Spain, a increasing precedence is pro-cyclical, 100% certain to means a bigger problem down a road.
Here is a Mish-modified interpretation of an El Economista essay on Spanish Bond Purchases.
Financial institutions have turn a categorical financier in Spanish supervision holds after foreigners cold €89.6 billion in a initial 8 months of a year, according to Treasury data.
In these eight months, Spanish bearing has risen €108.8 Billion, a record 106.84% increase.
Meanwhile, unfamiliar investment in Spanish debt has forsaken 31.8% during a same period, station during €191.836 billion euros, compared to €281.439 during a finish of 2011.
This is a second uninterrupted time given 2008 that a debt in unfamiliar hands is next a €200 billion.
Banks are now a categorical investor, forward of foreigners, accumulating now 34.07% of a open debt, compared to 33.49% by unfamiliar investors. This conditions has not occurred given 2003.