Spain Caja clean up act - Good news
Wednesday, February 2, 2011 @ 11:13 AM
MADRID, Feb 1 (Reuters) - A long-awaited clearer view of the enormous potential losses facing Spain's savings banks and signs efforts are being stepped up to return the sector to financial health got the thumbs-up from markets on Tuesday.
The Spanish 10-year bond yield ES10YT=TWEB spread over German benchmarks DE10YT=TWEB fell to its lowest level since November and Madrid share prices rose as bond investors digested hard data on the banks' exposure to the country's ailing property sector.
That helped maintain positive sentiment after the two largest of the privately held savings banks said in recent days they would seek to offload part of the financing burden onto stock markets via equity listings.
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