The Greek Bond Market in 2007
|
|
- Gwenda Hardy
- 6 years ago
- Views:
Transcription
1 The Greek Bond Market in YEAR BENCHMARK ISSUE MAY 2007 MARKET ANALYSIS , Financial Markets Group Planning Department Please refer to important Disclaimer on the last page of the presentation
2 Contents GREEK ECONOMY Greek economy Sovereign Credit Rating THE GREEK BOND MARKET Primary bond market Secondary bond market Greece vs Eurozone 15YR Hellenic Republic benchmark appeal
3 GREEK ECONOMY
4 4 Greek economy Greek GDP has been expanding since The longest period of continuous economic growth after the 1970s. The strong economic growth rates are maintained despite their marginal slowdown. Government deficit below the reference level the treaty of Maastricht imposes (3% GDP). Rates of decrease of government debt are considered to be among Eurozone s highest. Unemployment rate declined lower than 9% in European Commission asked (16/05) for lifting of the European Union`s excessive deficit procedure. Main priorities for 2007 are the reduction of government debt, further decrease of fiscal deficit, increase of employment, improvement of competitiveness and reinforcement of investments * 2007** 2008** GDP growth rate (stable prices) 4.8% 4.7% 3.7% 4.3% 3.9% 3.7% 3.7% Inflation (HICP- average levels) 3.5% 3.0% 3.5% 3.3% 3.0% 3.2% 3.1% General Government Deficit %GDP 6.1% 7.9% 5.5% 2.6% 2.4% 2.4% 2.7% General Government Debt %GDP 107.8% 108.5% 107.5% 104.6% 100.4% 100.9% 97.6% Unemployment 9.7% 10.5% 9.9% 8.9% 8.2% 8.9% 8.6% Source: ** European Commission *MoF Budget 2007
5 5 Greek economy Gross Domestic Product, Growth Rate % Greece-Eurozone Private consumption consists the most important determinant of economic growth. However, interest rates increase combined with the controlling wage increases decelerate its growth rate. 6,0 5,0 4, Public consumption is expected to show considerable decrease whereas public investments are estimated to continue increasing at high pace (8% in 2007). % 3,0 2,0 1,0 0, * 2008* Strong global economic growth (5.3%) in 2006 benefited Greece s export potential. Mild slowdown of global economic growth (4.9%) in 2007 is expected to influence negatively Eurozone s countries. Eurozone Greece European Commission forecasts growth rate will decline to 3.7% in 2007 and 2008 from 4.3% in Source: European Commission *Forecast MoF anticipates economic growth of 3.9% and 4.0% in 2007 and 2008 respectively. Possibility of a one-off increase of GDP up to 25% subject to Eurostat approval.
6 6 Greek economy Inflation 5,5 Greek-EU HICP Inflation gap Greek HICP Inflation Stronger GDP growth and economy s competitiveness inefficiencies retain Greece- Eurozone inflation gap. 4,5 3,5 Greece inflation rate at 3.3% vs Eurozone inflation at 2.2% in % 2,5 1,5 0,5-0,5 Greece s inflation differential over Eurozone average in the January to April 2007 declined to 0.8% from 1% over the comparable 2006 period. Average HICP inflation in Greece in the January to April 2007 period decreased to 2.8% compared to 3.3% in the same period of 2006 due to decline in energy prices. 1/00 7/00 1/01 7/01 1/02 7/02 1/03 7/03 Source: Eurostat, Markets Analysis Section 1/04 7/04 1/05 7/05 1/06 7/06 1/07 European Commission forecasts inflation rate will decline to 3.2% and 3.1% in 2007 and 2008 respectively from 3.3% in 2006.
7 7 Greek economy Fiscal Developments GDP growth rate, Budget Defiicit % GDP 5% 3% 1% -1% -3% -5% -7% * General Government Debt %GDP Greece s budget deficit declined to 2.6% of GDP in 2006 from 5.5% in MoF forecasts general government deficit to decline to 2.4% of GDP in 2007 and to shrink further to 1.8% and 1.2% in 2008 and 2009 respectively. According to Greek government s 2007 budget, general government deficit will decline to 2.4% due to increase in receipts from indirect taxes and social contributions as well as decrease of expenses. Greek government targets balanced budget until GDP growth rate Government Debt % GDP Budget Deficit %GDP General government debt (% of GDP) is expected to fall to 100.4% in 2007 from 104.6% in The reduction of government debt (% GDP) is estimated to 8% for the period. Source: Ministry of Finance *Forecast
8 8 Greek economy General Government Balance * 2008* AUSTRIA BELGIUM FINLAND FRANCE GERMANY GREECE IRELAND ITALY LUXEMBURG NETHERLANDS PORTUGAL SLOVENIA SPAIN EU Eurozone budget deficit is expected to fall in 2007 to 1% from 1.6% in 2006 and improve to 0.8% in Greece had the 3 rd highest budget deficit to GDP ratio in 2006 among Eurozone countries after Italy and Portugal. Greece brought its budget deficit down to 2.6% of GDP in 2006, below the EU s 3% cap. According to EU s forecasts Hellenic Republic budget deficit will decline to 2.4% in 2007 and will slightly increase to 2.7% in General Government Balance % GDP Source: European Commission, May 2007 * Forecast
9 9 Greek economy General Government Debt * 2008* AUSTRIA BELGIUM FINLAND FRANCE GERMANY GREECE IRELAND ITALY LUXEMBURG NETHERLANDS PORTUGAL SLOVENIA SPAIN EU General Government Debt %GDP General government debt in Eurozone is expected to decrease to 66.9% and 65% of GDP in 2007 and 2008 respectively, from 69% of GDP in Greece had the 2 nd highest debt to GDP ratio in Eurozone following Italy in According to EU s forecasts, Hellenic Republic general government debt will decrease to 100.9% of GDP in 2007 from 104.6% in 2006 whereas it will decline (97.6%) below 100% in Source: European Commission, May 2007 * Forecast
10 Greek economy Sovereign Credit Rating Aa3 AA- A1 A+ A2 A Moody's A3 Baa1 GREECE Foreign Currency LT Debt A- BBB+ S&P, Fitch Baa2 S&P Fitch Moody s Α Α Α1 Outlook: Stable Positive Positive BBB Baa3 BBB Moody's S & P Fitch Μoody s and Fitch upgraded Greece s rating outlook to Positive from Stable in January and March 2007 respectively. Greece s sovereign credit status remained unchanged in 2005 and
11 11 Greek economy Sovereign Rating Potential Fitch rating agency upgraded country s credit outlook (3/2007) to Positive from Stable, reflecting recent improvements in the public finances, growing fiscal credibility of the government and the expectation of large positive revisions to the level of GDP. S&P rating agency affirmed country s rating (3/2007) and noted that the Greek government continues to adhere to a program of gradual fiscal consolidation, having reduced the general government deficit to less than 3.0% of GDP in S&P emphasized that this consolidation will be unsustainable over the longer term without an increased focus on primary expenditure discipline. Moody s rating agency upgraded country s credit outlook (1/2007) to Positive from Stable, reflecting strong growth, ongoing slow decline in the country s public debt ratios and fiscal consolidation. In its annual assessment (3/2007) Moody s noted that Greece has made impressive progress towards convergence with the countries of the Eurozone while the budget deficit is decreasing as the government has been successfully controlling expenditures and increasing tax collection. Moody s rating agency retained country s credit rating (12/2004) to A1 due to historical high rate of GDP growth and EU membership but expressed its concern over high debt level and long term growth potential. Credit rating agencies S&P (11/2004) and Fitch (12/2004) downgraded Greece s sovereign rating in the end of 2004 by one notch to A from A+. Sovereign creditworthiness deterioration is attributed to budget deficit and government debt level upward revision for the period Fiscal consolidation and implementation of structural reforms consist the most important factors that will determine country s credit outlook in the medium and long term.
12 THE GREEK BOND MARKET
13 Primary Debt Market Euro bn Government Debt Maturity Profile Debt in Euro Non Euro Debt The heaviest burden of outstanding government debt (approximately 77%) lies in the period Government debt denominated in euro consists 99.1% of the total (12/2006) compared to 98.7% and 98.8% in 2005 and 2004 respectively. Bonds represent 82.3% of total debt in 2006 from 81.7% and 79.1% in 2005 and 2004 accordingly. Fixed coupon bonds stand for 81.6% (78.7% in 2005) vs 18.4% (21.3% in 2005) for FRNs. Non euro denominated debt accounts for 0.9% of total outstanding debt in 2006 from 1.3% in 2005, 1.2% in 2004 and 1.9% in Source: MoF, Bloomberg Interest payment of government debt show a decreasing tendency as a % of GDP falling to 4.7% in 2007 and 4.9% in 2006 from 5.4% in 2005 and 5.6% in 2004.
14 14 Primary Debt Market Central Government Debt 12/2006 by currency Issuance composition, 1-12/2006 Fixed rate bonds 84.20% T-Bills 7.00% Euro 99.1% (12/2005: 98.7%) Non Euro 0.9% (CHF:74.3%, USD: 17.5%, JPY: 2.8%, GBP: 5.4%) Inflation linked 7.00% FRNs 1.80% Remaining Maturity of Central Government Debt (10/2006) Euro denominated debt composition (%), 12/ /2006 > 5 years 47.1% Dec-06 Dec-05 Dec years, 43.5% < 1 year, 9.4% Bonds 0.5 T-Bills Other Debt Bank of Greece Dec-04 Dec-05 Dec-06 Source: MoF, Bloomberg, PDMA, ALPHA BANK - Markets Analysis Section
15 15 Primary Debt Market Euro bn Primary Market Issuance*, HELLENIC REPUBLIC MONTHLY DEBT ISSUANCE, 1-5/ T-BILLS 6000 FIXED COUPON ISSUES 5000 OTHER ISSUES EUR MLN Q1 Q2 Q3 Q4 1/06 2/06 3/06 Source: Bank of Greece, ALPHA BANK - Market Analysis Section (5/2007) *T-Bills & Bonds 4/06 5/06 Issuance activity focused in the first half of the year due to refinancing and budget deficit cover needs. Government debt issuance in the first half of the year approaches 75% of total borrowing. Weighted average maturity of government securities for the period January to December 2006 increased to years compared to years in 2005 and 6.85 years in Bid to cover ratio in Greek government bond issues in 2006 increased to 4.89 times compared to 4 times in 2005 and 2.97 times in The equivalent ratio for the majority of Eurozone countries lies between times. In 2007 b/c ratio remains on average above 4 times.
16 Primary Bond Market Domestic Borrowing Composition PRIMARY MARKET ISSUANCE STRUCTURE - BY TENOR 2003 ( 32.2 bln) 2004 ( 31.6 bln) 2005 ( 37.1 bln) 2006( 28.4 bln) 1-5/2007( 17.6 bln) Hellenic Republic borrowing totaled 31 bn in 2006 from 38 bn in 2005 and 43 bn in Primary market issuance amounted to 28 bn in 2006 from 37 bn in EUR MLN. HELLENIC REPUBLIC BORROWING IN 2007 (1-5), BY MATURITY 0 3M 6M 12M 3Y 5Y 7Y 10Y 10-20Y 20Y> Source: ALPHA BANK - Markets Analysis Section (05/2007) Hellenic Republic borrowing in 2007 is expected to approach 35 bn from 31 bn in 2006 due to higher refinancing needs YR 18.7% 30 YR 21.4% 50 YR 5.3% 13 WKS 1.8% 26 WKS 1.0% 52 WKS 1.1% In January to May 2007 period Hellenic Republic has raised 18.7 bn through primary market and private placements. 10YR 37.9% 5 YR 12.7% 16
17 17 Secondary debt market Hellenic Republic Yield Curve Evolution % /30/2006 6/30/2006 5/16/2007 6M 1 Y 3 Y 5 Y 7 Y 10 Y 15 Y 30 Y Source: Bloomberg, ALPHA BANK - Market Analysis Section Expectations that ECB will insist on its tightening policy increased yields in the short and medium term part of the yield curve. Bond prices pressure in the long end of the curve was milder due to strong institutional investors demand and prospects for subdued inflation in the long term.
18 18 Secondary debt market Liquidity EUR BLN HDAT Trading Value, Average monthly transactions value in the electronic secondary securities market (HDAT) in the period Jan-April 2007 reached 57.8 bn compared to 52.7 bn in 1-4/2006 and 60.8 bn in 1-4/2005. HDAT consists one of the most liquid markets in the EU with favorable repercussions on the attractiveness of Greek government bonds. 22 Primary dealers participate in HDAT in 2007 (22 in 2006, 21 in 2005), while 17 of them are foreign owned financial institutions Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Source: PDMA ALPHA BANK, Market Analysis Section Dec Trading volume in Q focused on long term bonds (> 10 years) and accounted for 45% of trades. The new 10Y benchmark (4.30% 2017) recorded the highest trading volume (31.5%) followed by previous (2016 and 2015) 10Y issues.
19 19 Secondary debt market Liquidity 26 Greek government bond issues are traded in April 2007 on EuroMTS and on HDAT. EuroMTS trading platform completes and enhances GGBs liquidity. Issues amount (Euro bn) % 6/ % 4/ % 6/ % 1/ % 4/ % 6/ % 4/2010 6% 5/ % 5/ % 8/ % 5/ % 5/ / % 7/ % 8/ % 7/ % 10/ % 10/ % 7/ % 9/ % of trading activity in the primary market and 41.7% of trading activity in the secondary market HDAT (EuroMTS: 40.4%) during the period Jan-March 2007 covered by the 5 Greek banks. Greek government bonds average trading volume on EuroMTS in the 1st quarter of 2007 reached 8.2 bn relative to 9.4 bn in the same period in Source: PDMA ALPHA BANK, Market Analysis Section
20 20 Greece vs Eurozone Yield Curve Comparison: Greece vs Eurozone Yield to maturity % Yields differential Greece Eurozone Yields differential (bps) Y 3 Y 5Y 7 Y 10 Y 15 Y 30 Y 0 Bloomberg, 16/5/2007 Longer dated part of the HR sovereign yield curve offer the richest spread over Eurozone yield curve.
21 21 Greece vs Eurozone 15 year sovereign benchmark yield spread evolution over France OAT January 2003 May GREECE IT ALY PORTUGAL /03 5/03 10/03 2/04 7/04 12/04 4/05 9/05 1/06 6/06 11/06 3/07 Yield Spread (bps) Source: Bloomberg
22 22 Greece vs Eurozone 15 year European sovereign yield spread over mid swaps January 2004 May GRECE 5.9% 2022 ITALY 9% FRANCE 8.25% 2022 PORTUGAL 3.85% ITALY,GREECE FRANCE, PORTUGAL /04 5/04 10/04 2/05 7/05 12/05 4/06 9/06 1/ /04 5/04 10/04 2/05 7/05 12/05 4/06 9/06 1/07 Source: Bloomberg
23 23 Greece vs Eurozone 15 year Asset Swap Spread & Sovereign Rating ITALY 15yr sovereign swap spread (bps) FRANCE AAA AA+ AA AA- A+ A PORTUGAL BELGIUM AUSTRIA NETHERLAND GERMANY GREECE Standard & Poor's Rating Scale Bloomberg, Reuters 17/5/2007
24 24 Greece vs Eurozone 15 year Asset Swap Spread & Sovereign Rating 6 15year sovereign swap spread (bps) AUSTRIA FRANCE NETHERLANDS BELGIUM ITALY Aaa Aa1 Aa2 Aa3 A1 PORTUGAL GREECE GERMANY Moody's Rating Scale Bloomberg, Reuters 17/5/2007
25 25 Greece vs Eurozone Budget balance & Asset Swap Spread ITALY 15year sovereign swap spread (bps) PORTUGAL GREECE -18 BELGIUM FRANCE AUSTRIA NETHERLANDS -24 GERMANY European Commission forecasts Bloomberg-Reuters data, 17/5/2007 General Government Balance % GDP, 2007
26 26 Greece vs Eurozone Public Debt & Asset Swap Spread 5 2 ITALY 15 year sovereign swap spread (bps) AYSTRIAFRANCE PORTUGAL GREECE BELGIUM -22 NETHERLAND GERMANY General Government Gross Debt % GDP, 2007 European Commission forecasts Bloomberg-Reuters data, 17/5/2007
27 27 15 year Hellenic Republic benchmark appeal 15 year Hellenic Republic benchmark yield spread over France OAT 40 Hellenic Republic sovereign bonds offer the highest yield over Eurozone comparables. Yield Spread (bps) Longer dated Hellenic Republic bonds offer the richest spread over Eurozone yield curve /05 5/05 10/05 3/06 7/06 12/06 4/07 Strong GDP growth along with ameliorating fiscal and public debt profile signal potential sovereign credit status strengthening. Improving sovereign credit rating potential allows for further GGBs spread narrowing over Eurozone benchmarks. Source: Bloomberg
28 Contacts Financial Markets Trading Manos Arzinos Natassa Niniou Sovereign (EU) Debt Kostas Lebessis Despina Gouvali Sovereign (Non-EU) & Corporate Debt Kiki Karayianni Eleni Koukoutsidou George Palaiokrassas Sales Division Institutional Sales Nassos Pavlidis Kitsos Botsaris Irini Tsaida Market Analysis Panos Remoundos Maria Koutouzi Kostas Kamarinopoulos Stella Korkontzelou , Division Manager Assistant Division Manager , Senior Trading Manager Trading Manager , Senior Trading Manager Trading Manager Asst. Trading Manager , Assistant Division Manager Senior Sales Manager Asst. Sales Manager , Senior Analysis Manager Analysis Manager Analysis Manager Asst. Analysis Manager
29 Disclaimer The information herein is believed to be reliable and has been obtained from sources believed to be reliable, but we make no representation or warranty, express or implied, with respect to the fairness, correctness, accuracy or completeness of such information. In addition we have no obligation to update, modify or amend this communication or to otherwise notify a recipient in the event that any matter stated herein, or any opinion, projection, forecast or estimate set forth herein, changes or subsequently becomes inaccurate. We are not acting and do not purport to act in any way as an advisor or in a fiduciary capacity. We therefore strongly suggest that recipients seek their own independent advice in relation to any investment, financial, legal, tax, accounting or regulatory issues discussed herein. Analyses and opinions contained herein may be based on assumptions that if altered can change the analyses or opinions expressed. Nothing contained herein shall constitute any representation or warranty as to future performance of any financial instrument, credit, currency rate or other market or economic measure. Furthermore, past performance is not necessarily indicative of future results. This communication is provided for information purposes only. It is not an offer to sell, or a solicitation of an offer to buy, any security, nor to enter into any agreement or contract with Alpha bank or any affiliates. In addition, because this communication is a summary only it may not contain all material terms, and therefore this communication in and of itself should not form the basis for any investment decision. Financial instruments that may be discussed herein may not be suitable for all investors, and potential investors must make an independent assessment of the appropriateness of any transaction in light of their own objectives and circumstances, including the possible risks and benefits of entering into such a transaction. By accepting receipt of this communication the recipient will be deemed to represent that they possess, either individually or through their advisers, sufficient investment expertise to understand the risks involved in any purchase or sale of any financial instrument discussed herein.
Eurozone Economic Watch. November 2017
Eurozone Economic Watch November 2017 Eurozone: improved outlook, still subdued inflation Our MICA-BBVA model for growth estimates for the moment a quarterly GDP figure of around -0.7% in, after % QoQ
More informationDomestic Debt Market Development in Poland Marek Szczerbak Republic of Poland Ministry of Finance Public Debt Department
Domestic Debt Market Development in Poland Marek Szczerbak Republic of Poland Ministry of Finance Public Debt Department DMF Stakeholders Forum 2011 Berne, 8-9 June 2011 1 I. Historical perspective 2 Developing
More informationEuro-QE at the end of the road for now
Germany France Italy Agencies Spain Netherlands Belgium Austria Portugal Finland Ireland Slovakia Slovenia Lux Latvia Lithuania Malta 7.8 2.6 2.1 3.21 1.17 Trend Macrolytics, LLC Donald Luskin, Chief Investment
More informationThe ECB's drive to build purchased assets
Germany France Italy Agencies Spain Netherlands Belgium Austria Portugal Finland Ireland Slovakia Slovenia Lux Latvia Lithuania Malta 7.8 2.6 2. 3.1 1.11 Trend Macrolytics, LLC Donald Luskin, Chief Investment
More informationThe ECB's drive to build purchased assets
Germany France Italy Agencies Spain Netherlands Belgium Austria Portugal Finland Ireland Slovakia Slovenia Lux Latvia Lithuania Malta 7.6 2.5 1.9 2.86 1.11 Trend Macrolytics, LLC Donald Luskin, Chief Investment
More informationEurozone Economic Watch Higher growth forecasts for January 2018
Eurozone Economic Watch Higher growth forecasts for 2018-19 January 2018 Eurozone Economic Watch January 2018 Eurozone: Higher growth forecasts for 2018-19 Our MICA-BBVA model estimates a broadly stable
More informationEurozone. Economic Watch FEBRUARY 2017
Eurozone Economic Watch FEBRUARY 2017 EUROZONE WATCH FEBRUARY 2017 Eurozone: A slight upward revision to our GDP growth projections The recovery proceeded at a steady and solid pace in, resulting in an
More informationChallenges to the single monetary policy and the ECB s response. Benoît Cœuré Member of the Executive Board European Central Bank
Challenges to the single monetary policy and the ECB s response Benoît Cœuré Member of the Executive Board European Central Bank Institut d études politiques, Paris 2 September 212 1 Prime conduit of monetary
More informationEuro-QE at the end of the road for now
Germany France Italy Agencies Spain Netherlands Belgium Austria Portugal Finland Ireland Slovakia Slovenia Lux Latvia Lithuania Malta 7.9 2.6 2.1 3.16 1.15 Trend Macrolytics, LLC Donald Luskin, Chief Investment
More informationSEE macroeconomic outlook Recovery gains traction, fiscal discipline improving. Alen Kovac, Chief Economist EBC May 2016 Ljubljana
SEE macroeconomic outlook Recovery gains traction, fiscal discipline improving Alen Kovac, Chief Economist EBC May 216 Ljubljana Real economy highlights Recent GDP track record reveals more favorable footprint
More informationPRESENTATION BY JACOB A. FRENKEL AT THE FORUM: INTELLIGENCE ON THE WORLD, EUROPE, AND ITALY. Villa d'este, Cernobbio - September 7, 8 and 9, 2012
PRESENTATION BY JACOB A. FRENKEL AT THE FORUM: INTELLIGENCE ON THE WORLD, EUROPE, AND ITALY Villa d'este, Cernobbio - September 7, 8 and 9, 1 Working paper, September 1. Kindly authorized by the Author.
More informationMacroeconomic overview SEE and Macedonia
Macroeconomic overview SEE and Macedonia Zoltan Arokszallasi Chief Analyst, Macro & FX/FI Research Erste Group Bank Erste Investors Breakfast, 29 September, Skopje 02. Oktober SEE shows mixed performance
More informationEUROZONE ECONOMIC WATCH JANUARY 2017
EUROZONE ECONOMIC WATCH JANUARY 2017 Key messages: some changes for the better Improving confidence in across the board shows the resilience of the eurozone to the various potentially disturbing political
More informationThe European Economy. Simon Barry Chief Economist Republic of Ireland. December 2012
The European Economy Simon Barry Chief Economist Republic of Ireland December 212 Euro area economy now back in recession as GDP contracts in 3 of the past 4 quarters Euro Area Real GDP Growth, % 1.5 1..5.
More informationEurozone Economic Watch. May 2018
Eurozone Economic Watch May 2018 BBVA Research - Eurozone Economic Watch / 2 Eurozone: more moderate growth with higher uncertainty The eurozone GDP growth slowed in more than expected. Beyond temporary
More informationB-GUIDE: Economic Outlook
Aug-12 Apr-13 Dec-13 Aug-14 Apr-15 Dec-15 Aug-16 Apr-17 Jul-15 Nov-15 Mar-16 Jul-16 Nov-16 Mar-17 Jul-17 Quarterly Economic Outlook: Quarter 4 2017 4 January 2018 B-GUIDE: Economic Outlook The economy
More informationSome Historical Examples of Yield Curves
3 months 6 months 1 year 2 years 5 years 10 years 30 years Some Historical Examples of Yield Curves Nominal interest rate, % 16 14 12 10 8 6 4 2 January 1981 June1999 December2009 0 Time to maturity This
More informationPRACTICAL ASPECTS AND DILEMMAS OF MEDIUM TERM FISCAL PLANNING - CASE OF SLOVENIA. Copyright rests with the author. All rights reserved.
PRACTICAL ASPECTS AND DILEMMAS OF MEDIUM TERM FISCAL PLANNING - CASE OF SLOVENIA Copyright rests with the author. All rights reserved. Saša Jazbec, Ministry of Finance Republic of Slovenia MARCH 2018 Agenda
More informationAggressor pays >15y 40 2y 10. to the buy side bond maturity >15y 40 Basis Trades All 10 Aggressor pays 5y vs 10y 30 Curves
Product Type: UK Gilts 2y 10. If trade is > 25m, then a rate of GBP 5 per million GBP is applied Outrights >2y - 7y 20 >7y - 15y 30 >15y 40 2y 10 Conventionals Spreads/Switches >2y - 7y 20 with brokerage
More information05 April Government bond yields, curve slopes and spreads Swaps and Forwards Credit & money market spreads... 4
Strategy Euro Rates Update Nordea Research, April 1 US Treasury Yields Y Y 1Y 3Y.7 1.3 1.79.3 1D -. -. -1. -1. 1W -9. -. -11. -. German Benchmark Yields Y Y 1Y 3Y -. -.3.1.77 1D...1 -.1 1W.3 -. -7.1-1.
More informationEurozone Economic Watch. February 2018
Eurozone Economic Watch February 2018 Eurozone: Strong growth continues in 1Q18, but confidence seems to peak GDP growth moderated slightly in, but there was an upward revision to previous quarters. Available
More informationEurozone Economic Watch. July 2018
Eurozone Economic Watch July 2018 Eurozone: A shift to more moderate growth with increased downward risks BBVA Research - Eurozone Economic Watch July 2018 / 2 Hard data improved in May but failed to recover
More informationEurozone Economic Watch. April 2018
Eurozone Economic Watch April 2018 Eurozone: solid growth and broadly unchanged projections, with protectionist risks BBVA Research - Eurozone Economic Watch / 2 Confidence has weakened in 1Q18 since the
More informationShort-term indicators and Updated Forecasts. Eurozone NOVEMBER 2016
Short-term indicators and Updated Forecasts Eurozone NOVEMBER 2016 EUROZONE WATCH NOVEMBER 2016 Key messages: resilience and unchanged projections The moderate pace of economic growth continued in the
More informationGBP per million GBP >7y - 15y 30. to the buy side bond maturity >15y 40 Basis Trades All 10 Aggressor pays
Product Type: UK Gilts 2y 10. If trade is > 25m, then a rate of GBP 5 per million GBP is applied Outrights >2y - 7y 20 >7y - 15y 30 >15y 40 2y 10 >2y - 7y 20 with brokerage charged on the buy leg. Spreads/Switches
More informationEuro Rates Update. 26 January % 0.9% 0.8% 2.4% 0.7% 0.6% 2.2% 0.5% 0.4% 2.0% 0.3% 0.2% 1.8% 0.1% 0.0% 1.6% Jan-15 May-15 Aug-15 Nov-15 Feb-16
FI Strategy Nordea Research, January 1 US Treasury Yields Y Y 1Y 3Y.7 1... 1D -1.7 -. -. -. 1W.3.9 1. -1. German Benchmark Yields Y Y 1Y 3Y -. -.3. 1. 1D -. -.3-1.7-3. 1W -. -.7. -.1 German Curve Slopes
More informationThe ECB s Strategy in Good and Bad Times Massimo Rostagno European Central Bank
The ECB s Strategy in Good and Bad Times Massimo Rostagno European Central Bank The views expressed herein are those of the presenter only and do not necessarily reflect those of the ECB or the European
More informationGeorge Linatsas Group Managing Director Axia Ventures Group
Investment Opportunities For Foreign Investors In The Greek Stock Market George Linatsas Group Managing Director Axia Ventures Group December 2, 2010 The Athens Exchange General Index has reached multi-year
More informationEuro Rates Update. 26 February % 0.9% 0.8% 2.4% 0.7% 0.6% 2.2% 0.5% 0.4% 2.0% 0.3% 0.2% 1.8% 0.1% 0.0%
FI Strategy Euro Rates Update Nordea Research, 6 February 6 US Treasury Yields Y Y Y Y.7.8.7.6 D....7 W -.6 -. -.7 -. German Benchmark Yields Y Y Y Y -. -...8 D -. -..7. W -. -.8 -.8 -. German Curve Slopes
More informationPortuguese Banking System: latest developments. 2 nd quarter 2017
Portuguese Banking System: latest developments nd quarter 17 Lisbon, 17 www.bportugal.pt Prepared with data available up to th September of 17. Portuguese Banking System: latest developments Banco de Portugal
More informationCapital Market Press Conference 2013 / Frankfurt, 5 December 2013
Capital Market Press Conference 2013 / 2014 Frankfurt, 5 December 2013 Key financial figures of KfW Group (IFRS) 2013: Solid business performance, decreasing profit, very sound capital basis 2011 2012
More informationEurozone Economic Watch. March 2018
Eurozone Economic Watch March 20 Eurozone Economic Watch March 20 Eurozone: The moderation of confidence continues We expect GDP growth to remain steady early this year supported mostly by strong global
More informationTrends and opportunities across regions: Europe
Trends and opportunities across regions: Europe Monday, 6 June 2011 Head of Institutional Fixed Income Europe Three themes shaping global opportunities I. Long term: Spheres of influence are shifting among
More informationQuarterly Report for the Greek Economy
Quarterly Report for the Greek Economy 3-2016 October 11 th, 2016 This presentation is supported by Various developments in the current period Positive developments: international tourism, low energy prices,
More information1.1. Low yield environment
1. Key developments The overall macroeconomic environment remains very challenging for the European insurance and pension sector. The yields have been further compressed and are substantially below the
More informationSKAGEN Tellus Statusrapport maj 2017
SKAGEN Tellus Statusrapport maj 2017 Key numbers as of 31 May 2017 SEK, net of fees May QTD YTD 1 years 3 years 5 years Since inception* SKAGEN Tellus 0,37 % -1,9% 0,61 % 7,46 % 5,66 % 5,71 % 5,54 % JPM
More informationPricing for Protection Can Margin Expansion Offset Credit Risk
Pricing for Protection Can Margin Expansion Offset Credit Risk Mr. Marinos Yannopoulos, General Manager and Board Member GOLDMAN SACHS EUROPEAN FINANCIALS CONFERENCE FRANKFURT 4 June 2009 A strong franchise
More informationEurope Outlook. Third Quarter 2015
Europe Outlook Third Quarter 2015 Main messages 1 2 3 4 5 Moderation of global growth and slowdown in emerging economies, with downside risks The recovery continues in the eurozone, but still marked by
More informationEconomic outlook for Euro & talous (Bank of Finland Bulletin) 5/2013 Governor Erkki Liikanen 12 December 2013
Economic outlook for 2013 2015 Euro & talous (Bank of Finland Bulletin) 5/2013 Governor Erkki Liikanen 12 December 2013 1 Positive signals from the international economy 12.12.2013 Governor Erkki Liikanen
More informationOUTLOOK FOR THE NEW ZEALAND GOVERNMENT DEBT MARKET. 1 The Treasury
OUTLOOK FOR THE NEW ZEALAND GOVERNMENT DEBT MARKET 1 The Treasury TODAY Economic outlook New Zealand Government: risk/reward Fiscal priorities NZDMO s strategy What to watch for 2 1. ECONOMIC OUTLOOK 3
More informationRecent developments in the euro money market. Money Market Contact Group Frankfurt, 18 September 2012
Recent developments in the euro money market Money Market Contact Group Frankfurt, 18 September 2012 ECB developments and announcements I 5 July 2012 The ECB reduced by 25 basis points the interest rate
More informationRecent Developments Money Market MMCG Meeting
Recent Developments Money Market MMCG Meeting 18.03.04 Schedule Major Events Capital Markets Money Market Outlook Regulatory Credit Provision FRA EONIA FWD EONIA Monetary Policy Equity Markets Liquidity
More informationEurozone Economic Watch
BBVA Research - Global Economic Watch December 2018 / 1 Eurozone Economic Watch December 2018 Eurozone GDP growth still slows gradually, but high uncertainty could take its toll GDP growth could grow by
More informationPublic Debt Strategy in Mexico
Public Debt Strategy in Mexico 3rd OECD-China Forum on Public Debt Management and Government Securities Markets September 2006, Beijing, China www.hacienda.gob.mx/ucp 2 Index 1. Debt Management Strategy
More informationLatvia and the Euro. Ilmārs Rimšēvičs Governor. Latvijas Banka
Latvia and the Euro Ilmārs Rimšēvičs Governor. Latvijas Banka October, 2013 Despite loud ex ante warnings of protracted recession risks under internal adjustment scenario, a strong V shaped recovery followed
More informationNew Zealand Government Debt Market Outlook. February 2018
New Zealand Government Debt Market Outlook February 2018 Overview New Zealand Economic Outlook New Zealand Government: Fiscal Priorities New Zealand Government Bonds: Risk/Reward NZDMO: Strategy and Announcements
More informationOUTLOOK FOR THE NEW ZEALAND GOVERNMENT DEBT MARKET
OUTLOOK FOR THE NEW ZEALAND GOVERNMENT DEBT MARKET All photography sourced from: http://www.nzstory.govt.nz 1 The Treasury OVERVIEW 1 New Zealand Economic Outlook 2 New Zealand Government Bonds: Risk/Reward
More informationChart pack to council for cooperation on macroprudential policy
Chart pack to council for cooperation on macroprudential policy Contents List of charts... 3 Macro and macro-financial setting... 5 Swedish macroeconomic setting... 5 Foreign macroeconomic setting... Macro-financial
More information2016 Economic Outlook for Ireland & Eurozone IFP Launch
2016 Economic Outlook for Ireland & Eurozone IFP Launch December 3 rd 2015 Jim Power Global Background US & UK growing at reasonable pace Euro Zone growing well below potential Emerging markets in some
More informationEuro Zone Update: On the mend
Euro Zone Update: On the mend OCBC Treasury Research and Strategy 2 Feb 214 Executive Summary The Euro Zone economy has emerged from recession in the second half of 213, and growth is forecast to accelerate
More informationDEVELOPMENTS IN THE COST COMPETITIVENESS OF THE EUROPEAN UNION, THE UNITED STATES AND JAPAN MAIN FEATURES
DEVELOPMENTS IN THE COST COMPETITIVENESS OF THE EUROPEAN UNION, THE UNITED STATES AND JAPAN MAIN FEATURES The euro against major international currencies: During the second quarter of 2000, the US dollar,
More informationGBP per million GBP >7y - 15y 30. to the buy side bond maturity >15y 40 Basis Trades All 10 Aggressor pays
Product Type: UK Gilts 2y 10. If trade is > 25m, then a rate of GBP 5 per million GBP is applied Outrights >2y - 7y 20 >7y - 15y 30 >15y 40 2y 10 >2y - 7y 20 with brokerage charged on the buy leg. Spreads/Switches
More informationECONOMIC AND MONETARY DEVELOPMENTS
Box 2 RECENT WIDENING IN EURO AREA SOVEREIGN BOND YIELD SPREADS This box looks at recent in euro area countries sovereign bond yield spreads and the potential roles played by credit and liquidity risk.
More informationEuropean Bond Spreads, Yield Curves And Volatility
European Bond Spreads, Yield Curves And Volatility A client posed the question a few years ago during one of the many rolling sovereign credit crises then roiling the Eurozone as to when the whole thing
More informationEconomic Bulletin. Executive Summary. Contents. Council of Economic Advisors ISSUE 1 APRIL 6, 2018
Council of Economic Advisors ISSUE 1 APRIL 6, 2018 Economic Bulletin Executive Summary Contents The Board of Directors (BoD) of the European Stability Mechanism (ESM) approved on March 27 the fourth tranche
More informationEUROPEAN LEVERAGED LOAN MARKET IMPACT OF THE CREDIT CRISIS
AVOCA CAPITAL LEVERAGED LOANS EUROPEAN LEVERAGED LOAN MARKET IMPACT OF THE CREDIT CRISIS OUTLOOK 1 AVOCA CAPITAL INTRODUCTION Avoca is a large and long established European leveraged loan manager Top 5
More information2011 Ringgit Bond Market Outlook
211 Ringgit Bond Market Outlook Wan Murezani Wan Mohamad Head Fixed Income Research 211 Investor Briefing 22 March 211 MALAYSIAN RATING CORPORATION BERHAD Clarity and Integrity www.marc.com.my Disclaimer
More informationPortuguese Banking System: latest developments. 3 rd quarter 2017
Portuguese Banking System: latest developments 3 rd quarter 217 Lisbon, 218 www.bportugal.pt Prepared with data available up to 18 th December of 217 for macroeconomic and financial market indicators,
More informationSlovak Republic. Investor Presentation March 2011
Slovak Republic Investor Presentation March 2011 1 Agenda 1. Slovak Republic at a Glance 2. Low Indebtedness and Solid Macro Fundamentals 3. Public Finance Consolidation Strategy 4. Prudent Debt Management
More informationExecutive Board meeting. 14 December 2011
Executive Board meeting December EU measures ECB Key policy rate has been reduced to. percent Measures: Liquidity operation with a maturity of months Reserve requirements reduced from to per cent Reduced
More informationEconomic recovery and employment in the EU. Raymond Torres, Director, ILO Research Department
Economic recovery and employment in the EU Raymond Torres, Director, ILO Research Department Outline of presentation I. Situation in the EU versus Japan and the US II. Role of macroeconomic policies and
More informationSlovak Republic. A Capital Destination. May 2004
Slovak Republic A Capital Destination May 2004 The Team Mr Vladimir Tvaroška State Secretary, Ministry of Finance Mr Martin Bruncko Chief Economic Adviser Mr Daniel Bytčánek Director, Debt and Liquidity
More informationPoland s Economic Prospects
Poland s Economic Prospects Unicredit Conference Warsaw, June 8, 11 Mark Allen Senior IMF Resident Representative for Central and Eastern Europe Recovery is driven by domestic demand Contributions to Real
More informationKazakhstan s CDS and bond yields on the rise
RESEARCH AND KNOWLEDGE MANAGEMENT 22 September 2017 Kazakhstan s CDS and bond yields on the rise Tenge has weakened by 1.5% in the past two weeks to 340.4/USD on 21 September. NBK expects tenge to remain
More informationTURKEY: RECENT DEVELOPMENTS January March 2018
TURKEY: RECENT DEVELOPMENTS January March 218 3 81 4 698 961 7 34 7 96 9 66 8 98 1 931 1 6 11 2 11 88 11 19 1 883 1 97 12 48 12 112 Per capita GDP tripled while nominal GDP quadrupled in last 1 years 237
More informationTurkey: Recent Developments and Future Prospects. ISBANK Economic Research Division October 2018
Turkey: Recent Developments and Future Prospects ISBANK Economic Research Division October 2018 Macroeconomic Outlook Strong Economic Growth Cycle GDP of 851 bn USD (2017), 10.6k USD (2017) per capita
More informationQuarterly Economic Outlook: Quarter on 25 September 2018 Strong Economic Expansions amidst Uncertainty of Trade War
Foregin Direct Investment (Billion USD) China U.S. Asia World Quarterly Economic Outlook: Quarter 3 2018 on 25 September 2018 Strong Economic Expansions amidst Uncertainty of Trade War Thai Economy: Thai
More informationTURKEY: RECENT DEVELOPMENTS January June 2018
TURKEY: RECENT DEVELOPMENTS January June 218 3 81 4 698 961 7 34 7 96 9 66 8 98 1 931 1 6 11 2 11 88 11 19 1 883 1 97 12 48 12 112 Per capita GDP tripled while nominal GDP quadrupled in last 1 years 237
More informationROMANIA March Gemloc Conference
ROMANIA 12-14 March 2014 Gemloc Conference Stefan Nanu General Director Treasury and Public Debt Department Ministry of Public Finance Diana Popescu Deputy General Director Treasury and Public Debt Department
More informationECONOMIC OUTLOOK. September, 2017 MINISTRY OF ECONOMY AND SUSTAINABLE DEVELOPMENT
ECONOMIC OUTLOOK September, 2017 MINISTRY OF ECONOMY AND SUSTAINABLE DEVELOPMENT CONTENTS GDP growth... 3 Potential Level of Economic Growth and GDP Gap... 3 Macroeconomic Environment in the Region...
More informationGovernment Bond Data Report
Government Bond Data Report European market data update Q3: 217 Association for Financial Markets in Europe www.afme.eu Table of Contents Table of Contents Table of Contents... 2 Annual change in Government
More informationCommunication on the future of the CAP
Communication on the future of the CAP The CAP towards 2020: meeting the food, natural resources and territorial challenges of the future Tassos Haniotis, Director Agricultural Policy Analysis and Perspectives
More informationTURKEY: RECENT DEVELOPMENTS January September 2018
TURKEY: RECENT DEVELOPMENTS January September 218 3 81 4 698 961 7 34 7 96 9 66 8 98 1 931 1 6 11 11 88 11 19 1 883 1 97 12 48 12 112 Per capita GDP tripled while nominal GDP quadrupled in last 1 years
More informationEurozone Focus The Ongoing Saga Of Sovereign Debt
14 The Ongoing Saga Of Sovereign Debt Sovereign debt will continue to be the headline issue for the Eurozone. Whilst the discordant debate over Greece has certainly overshadowed concerns over Portugal,
More informationThe improvement of peripheral bonds fundamentals has accelerated
Thematic paper I CROSS ASSET Investment Strategy February 18 The improvement of peripheral bonds fundamentals has accelerated RESEARCH STRATEGY & ANALYSIS February 18 I Thematic paper CROSS ASSET The improvement
More informationLiability hedging in a world without risk-free assets
Liability hedging in a world without risk-free assets Anthony MacGuinness & John Thornton Nov 2012 Agenda Liability Driven Investment (LDI) Background & Regulation Environment Liability Hedging: Practitioner's
More information4. Credit markets. (Chart 28) Corporate bond spreads (Japan) % points 0.6. Aa A Baa
. Credit markets Credit spreads remained at extremely tight levels (Chart 8). The favorable environment for financing through products such as CPs, corporate bonds, syndicated loans and securitized products
More informationChart Collection for Morning Briefing
Chart Collection for Morning Briefing April 3, 212 Dr. Edward Yardeni 516-972-7683 eyardeni@ Please visit our sites at www. blog. thinking outside the box Figure 1. SPANISH CREDIT INSTITUTIONS * EXPOSURE
More informationOutlook 2015: Europe & Germany
Part of the M&G Group Outlook 215: Europe & Germany Research presentation 27 th November 214 European Economic Fundamentals Update & Outlook 2 Economic recovery broadening GDP growth by country Q3 214
More informationMULTI-ASSET CLASS 1 EQUITIES: DEVELOPED COUNTRIES 1 EQUITY EMERGING COUNTRIES 2
10 2 3 6 8 9 13 14 MULTI-ASSET CLASS 1 EQUITIES: DEVELOPED COUNTRIES 1 EQUITY EMERGING COUNTRIES 2 Alpha Current Previous Alpha Current Previous Alpha Current Previous weight weight weight weight weight
More informationAsia Bond Monitor June 2018
September 8 asianbondsonline.adb.org Key Developments in Asian Local Currency Markets Japan s industrial production fell.% on a month-on-month (m-o-m) basis but rose.% on a year-on-year (y-o-y) basis in
More informationCapital Markets and Corporate Governance Service Line Capital Markets Practice, FPD
Capital Markets and Corporate Governance Service Line Capital Markets Practice, FPD Emerging Capital Markets Update for August 2011 All data are as of Wednesday, August 31, 2011. The regional indices are
More informationRecent developments and challenges for the Portuguese economy
Recent developments and challenges for the Portuguese economy Carlos Name da Job Silva Costa Governor 13 January 214 Seminar National Seminar Bank name of Poland 19 June 215 Outline 1. Growing imbalances
More informationAsia Bond Monitor November 2018
7 December 8 Key Developments in Asian Local Currency Markets T he monetary board of the Bangko Sentral ng Pilipinas decided to keep its key policy rates steady during its final meeting for the year on
More informationINVESTOR PRESENTATION 2017 RESULTS
INVESTOR PRESENTATION 2017 RESULTS 1 DISCLAIMER This presentation is not, and is not intended to be, an offer to sell any security or the solicitation of an offer to purchase any security. The following
More information2018 Investment and Economic Outlook
2018 Investment and Economic Outlook Presented 3/19/18 Jeffrey Neer, CFA Client Portfolio Manager 410-237-5592 jeffrey.neer@pnc.com 1 Monetary Policy: Key Factors Inflation U.S. U.S. Labor Market 2.4%
More informationInflation projection of Narodowy Bank Polski based on the NECMOD model
Economic Institute Inflation projection of Narodowy Bank Polski based on the NECMOD model Warsaw / 9 March Inflation projection of the NBP based on the NECMOD model Outline: Introduction Changes between
More informationJanuary 25, 2017 Financial Markets & Debt Portfolio Update Contra Costa Transportation Authority Introduction Public Financial Management Inc. (PFM),
January 25, 2017 Introduction Public Financial Management Inc. (PFM), financial advisor to the (CCTA) has prepared the following report as an update of market conditions through December 30, 2016. The
More information1.1. Low yield environment
1. Key developments Overall, the macroeconomic outlook has deteriorated since June 215. Although many European countries continue to recover, economic growth still remains fragile reflecting high public
More informationEuro Fixed Income. June Michael Krautzberger, Managing Director, Head of Euro Fixed Income FOR PROFESSIONAL INTERMEDIARIES ONLY
Euro Fixed Income Michael Krautzberger, Managing Director, Head of Euro Fixed Income June 2011 FOR PROFESSIONAL INTERMEDIARIES ONLY Numerous significant headlines in 2011 so far, but Financial markets
More informationPortuguese Banking System: latest developments. 2 nd quarter 2018
Portuguese Banking System: latest developments 2 nd quarter 218 Lisbon, 218 www.bportugal.pt Prepared with data available up to 26 th September of 218. Macroeconomic indicators and banking system data
More informationSecond estimate for the third quarter of 2008 EU27 current account deficit 39.5 bn euro 19.3 bn euro surplus on trade in services
STAT/09/12 22 January 2009 Second estimate for the third quarter of 20 EU27 current account deficit 39.5 bn euro 19.3 bn euro surplus on trade in According to the latest revisions1, the EU272 external
More informationEconomic Indicators. Roland Berger Institute
Economic Indicators Roland Berger Institute November 2018 Overview Key points Economic Indicators A publication, compiled by the Roland Berger Institute, that provides you with the most important macroeconomic
More informationThe Korean Economy: Resilience amid Turbulence
The Korean Economy: Resilience amid Turbulence Dr. Il SaKong Special Economic Advisor Adviser to the President Republic of Korea November 17, 17, 2008 November 17, 2008 1. Recent Macroeconomic Developments
More informationDeterminants of intra-euro area government bond spreads during the financial crisis
Determinants of intra-euro area government bond spreads during the financial crisis by Salvador Barrios, Per Iversen, Magdalena Lewandowska, Ralph Setzer DG ECFIN, European Commission - This paper does
More informationProspects and Challenges for the Global Economy and the MENA Region
Prospects and Challenges for the Global Economy and the MENA Region Ministry of Finance Cairo October 25, 2011 Andreas Bauer Division i i Chief, t International Monetary Fund Key points: The global outlook
More informationInvestment Opportunities in Global Fixed Income Markets
Investment Opportunities in Global Fixed Income Markets GSAM Insurance Fixed Income May 217 GSAM Insurance Asset Management Key Themes for 217 Economic Backdrop End of the Distortion Monetary to Fiscal
More informationGeneral debt-related data. page 3
18 19 1 3 4 5 6 7 8 9 3 31 3 33 34 35 36 37 38 39 4 41 4 43 44 45 46 47 MonthlyBulletin n 3 3 4 M a r c h 1 8 Publication manager: Anthony Requin Editor: Agence France Trésor Available in Arabic, Chinese,
More informationPORTUGUESE BANKING SECTOR OVERVIEW
PORTUGUESE BANKING SECTOR OVERVIEW AGENDA I. Importance of the banking sector for the economy II. III. Credit activity Funding IV. Solvency V. State guarantee and recapitalisation schemes for credit institutions
More informationTHE ECONOMY AND THE BANKING SECTOR IN BULGARIA
THE ECONOMY AND THE BANKING SECTOR IN BULGARIA SECOND QUARTER OF 2018 SOFIA HIGHLIGHTS The Bulgarian economy recorded growth of 3,6% on an annual basis in Q1 2018, driven by the private consumption and
More information