Best borrowers 2011: Spanish Treasury reports shift in investor attitudes
Investors are taking a more enlightened stance towards Spanish Treasury funding.
Ignacio Fernández, head of funding at the Spanish Treasury, has noticed a conspicuous change in the reception given to his team in roadshows over the past year or so. "We’re no longer being asked about how Spain is affected by what’s happening in other peripheral eurozone economies," he says. "Investors are asking much more detailed, concrete questions about the Spanish economy and about the specifics of our debt management metrics." He adds: "We’re not immune to information shocks. Nobody is. But what we have noticed recently is that when our spreads have widened in response to information shocks, they have tightened again much more quickly. That is a big change from 2010, and one of the reasons is that investors are much less influenced by headlines or unqualified statements. They want the facts and they are prepared to do a lot more analysis to make sure they have the right facts."