China’s $1.7 trillion hangover

China’s $1.7 trillion hangover

Up to 40% of China’s $1.7 trillion LGFV loans are at high risk of default. What’s a panicking Beijing to do?

EuromoneyFXNews.com

EuromoneyFXNews.com

Sign up to receive free alerts from our foreign exchange news service

March 1996

Spain: Bonds


A special report prepared by Banque Indosuez.


A EUROMONEY SURVEY - MARCH 1996

MARKET DEVELOPMENTS

The Spanish bond market, currently among the so-called European high-yielders, has developed at an amazing rate over the last six years. Spain still wore the "emerging market" label as late as 1988; the public debt markets did not offer any satisfactory liquidity in periods beyond three years when the withholding tax for non-residents was abolished in 1991. In the following three years, the Spanish bond market was able to offer a wide range of liquid instruments in all maturities from six months to 15 years and also developed a series of reliable hedging instruments (futures and derivatives).

The question remains whether this spectacular rate of development will survive the changing trends in the fixed-income markets if interest rates rise throughout Europe? There are strong reasons to believe that the fixed-income market rally of the last three years, which allowed such rapid developments, has...


You must be a trialist or subscriber to view this content

Please Subscribe or take a Free Trial below.
Already a subscriber? Log in here.





Download the Free Euromoney iPad app today