Banks in the City look to Spain to invest in 2013
According to recent new in Expansion, Spain is one of the main recommendations of investment analysts of the City of London, in the hope that the activation of the support of European Central Bank (ECB) boost markets and dispel any fears of euro break.
" Spain can give positive surprise in 2013, thanks to the reduction of the risk premium by advances in European integration". ( Ronan Carr, Morgan Stanley, London)
Goldman itself sees a good opportunity in the Spanish fixed income. Like most banks, the agency believes that Rajoy will ask the ECB in the first quarter of 2013 to enable its bond purchase program, which will cause a drop in the risk premium. Therefore, Goldman recommends buying Spanish government bonds to five years, because they could reduce their cost (going in the opposite direction of its price) of 4.3% to 3.5%. JPMorgan intends to acquire three-year Spanish debt.
Ben Funnell, manager GLG Partners, agrees that the market is attractive "by their valuation and the rapid increase in exports."
Other funds are cautious:
Rory Bateman and Philip Dicken, managers of Schroders and Threadneedle respectively, prefer to bet on "values listed in Spain but with heavy reliance on foreign sales."
Many managers believe that the Spanish market in 2013 will be one of the most successful betting. Fidelity bets on Ebro Foods, Inditex, BBVA, Iberdrola or Grifols, and Barclays believes that the big banks will be a good bet for 2013.
On Thursday, BBVA prooftested investor appetite. He managed to capture 1,500 million from investors, 90% from abroad. In addition, the Spanish bank debt issuance placed in record time and with high demand. In recent sessions, the risk premium has fallen to the lowest level since March. If this continue the decline, other companies will be encouraged to issue shortly.
Barclays analysts believe that one of the 'top trades' of 2013 may be the purchase of shares of the Spanish stock market because it is cheap. Estimate the Ibex 35 could give an annual return of 16%.
Morgan Stanley advocate for Ibex values such as Santander, Dis, Mapfre and Abertis. HSBC also recommends the Spanish market, especially Iberdrola. Among investment managers, GLG Partners see significant opportunities in the Ibex.
I am hapy to hear this, but left me thinking:
I wish growth analysis came always with a paragraph on how any growth will also contribute to the development of poor countries.
We just need to understand and enjoy the social character of wealth within the free market.
Yes, I dream for the world I want for my kids.
"Panoramica de la Giralda, Sevilla", Seville, South-west of Spain, by Chodaboy, at flickr.com