For Professional Clients and, in Switzerland, for Qualified Investors only. In Israel for Sophisticated Investors only.
English
  • English
  • French
  • German
  • Italian
  • Spanish
en
  • en
  • fr
  • de
  • it
  • es
Filter by theme
Filter by date
Filter by boutique
Filter by theme
Filter by date
Filter by boutique
No posts matching your criteria
Clear theme
Clear all
No posts matching your criteria
Clear date
Clear all
No posts matching your criteria
Clear boutique
Clear all
For Professional Clients and, in Switzerland, for Qualified Investors only. In Israel for Sophisticated Investors only.
English
  • English
  • French
  • German
  • Italian
  • Spanish
en
  • en
  • fr
  • de
  • it
  • es
© 2019. BNY Mellon Investment Management International Limited. All rights reserved.
IDEAS AND KNOWLEDGE TO INSPIRE YOUR INVESTMENTS THINKING
22 March 2018

Is Spain becoming semi-core?

From a pure economic perspective, we argue Spain has moved from the periphery to a semi-core member of the eurozone. The IMF estimates Spain’s potential growth to have improved from 0% in 2014 to 1.5% this year. In this sense, the structural reforms put in place starting in 2009 have contributed to a fair degree of competitiveness gains and higher potential growth.

 

More importantly, the market is likely to trade Spain favourably in the coming year. A potential catalyst is likely the S&P’s review of Spain, currently BBB+ with positive outlook, on 23 March 2018.

 

The growth outlook remains robust, and the Catalonia-Madrid tensions have dwindled; we believe the macro risks have receded sufficiently for the agency to upgrade Spain to A-. With two rating agencies in A-range (Fitch upgraded Spain to A- on 19 January), we believe the market is likely to price Spain as an A credit.

 

Rebecca Braeu – head of Sovereign Credit and strategy, Mellon 

Please note the content on this website is for Investment Professionals only and should be shared responsibly. No other persons should rely on the information contained within this website.

 

Investment Managers are appointed by BNY Mellon Investment Management EMEA Limited (BNYMIM EMEA) or affiliated fund operating companies to undertake portfolio management activities in relation to contracts for products and services entered into by clients with BNYMIM EMEA or the BNY Mellon funds.

 

Mellon was formed on 31 January 2018, through the merger of The Boston Company and Standish into Mellon Capital. Effective 2 January 2019, the combined firm was renamed Mellon Investments Corporation.

Subscribe to updates