Monday, May 25, 2015

The average cost of financing Treasury stood at 1.46% in … – Yahoo Finance Spain

New issuance totaled 239,535.4 million foreigners already have 47.1% of outstanding debt

MADRID , 25 (EUROPA PRESS)

The improvement in financial markets in 2014 allowed the average cost of issuance of Treasury will stand at 1.46%, some 100 basis points below the figure 2013, while the spread between ten-year benchmark Spanish and the corresponding German bond dropped by 114 basis points in December to reach an average of 120 points, according to the report of the Public Debt Market of the Bank of Spain.

New issuance in 2014 was similar to 2013, with 239,535.4 million, while net worth reached 57.569,4,8 ​​million, representing a decrease of 18.1%.

The negative net issuance of letters made the activity was concentrated in bonds, with an important part of the obligation to 10 years, which allowed to capture approximately 95% of net funding. Thus, the average life of debt at year end stood at 6.17 years, up more than 3 months of 2013.

Within the primary market, it is noteworthy that in 2014 Treasury expanded the set of financing instruments by issuing debt at 5 and 10 years and inflation-indexed bonds to 50 years.

A total of 12394.1 million were collected via indexed bonds Inflation, which represents 8.8% of loans made to medium and long term, a significant number considering that these emissions began in 2014.

The activity in the primary market in the other lines of short or medium and long term was marked by a number of specific conditions to each of them. In the short term, issuing letters to three and six months was significantly reduced by lower funding needs with short-term maturity.

In the long term, the maturity of bonds to 15 years and favorable financing conditions over long periods account for a rebound year (41.9%) in the gross issuance in this section, but not enough to offset the depreciation, so that the net issuance was negative again (5051.0 million), as and it was in 2013.

For 30-year bonds, the highlight is the annual relative stability in terms of loans (5662.9 million). In the segment of three years the activity is consolidated with emissions two years started in 2013, but discontinued shortly after.

In any case, the Treasury issuance program in 2014 resulted in 105 auctions and 5 syndication operations. The number of auctions held amounted to 48 letters, versus 57 for bonds, excluding syndications.

SECONDARY MARKET

Meanwhile, trading in the secondary market reached 17.2 billion, 14.3% more than 2013. According to the report, this growth was mainly due to 27.8% increase in hiring in the third stage, since conducted among holders only increased by 2, 3%.

Despite the variations, a deal almost equal parts on the activity is maintained, since the segment holders representing 47.5% of recruitment and negotiation with third accumulates 52.5%.

In terms of instruments, the bulk of trading last year corresponded to bonds and notes not segregated, which accounted for 85.7% of the total, compared with 12% of Treasury bills. By type of operation, simultaneous operations reached 41.4%, while spot trading and represented a 36.7% share in repo contracts represented 19.7%.

INVESTORS INCREASE ITS FOREIGN HOLDINGS

By portfolios of bonds and debentures, non-resident investors recorded the most important increase their holdings of debt 64,300 million over 2014 and reach 47.1% variation of the total . They also highlighted increased 8,300 million in the portfolios of other financial institutions and drops 6,100 million in Public Administration and 4,000 million in non-financial companies.

In letters, the most significant changes were the reductions in holdings of credit institutions and other financial institutions, estimated at 5,600 million and 4,000 million, respectively. In contrast, non-residents were at greatest quantitative importance, with a share of 70.3%.

The outstanding debt of other issuers fell by 5.193 million during 2014 for a net emission 2.403 million by the Autonomous Communities and a net repayment totaling 7.596 million by other issuers (mostly resulting in depreciation carried out by the FROB). Trading in securities of other issuers totaled 36,000 million, 26% less

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