Articles
Page 176 of 621
Cost of equity for Spanish and European banks
6 April 2022
The banks’ earnings recovery in 2021, and the prospect of rate normalisation in the relatively near future, drove significant growth in the Spanish and European banks’ share prices up until the outbreak of the crisis between Russia and Ukraine injected fresh market volatility. Nevertheless, the perception remains that the banks’ return on equity (ROE) does not sufficiently cover the estimated cost the market attributes to that capital (COE); however, if recent favourable ROE performance is sustainable over time, there could be significant room for upside in bank stock valuations.
Autores: Alberni, Marta, Berges, Ángel, Rodríguez, María
Tags: Bank capital
Implications for Spain of the reform of the EU´s fiscal rules
Spain, being one of the countries hardest hit by the crisis and with pronounced fiscal imbalances, has a lot at stake in the process currently underway of reforming the EU´s fiscal rules. As various European and national actors debate their positions, Spain´s seat at the negotiating table could be further strengthened by a commitment to credible fiscal consolidation in the medium-term.
Autores: Lago Peñas, Santiago
Tags: Fiscal rules
Spain´s dependence on foreign capital flows and the need for improved public debt sustainability
Seven countries currently account for over two-thirds of total foreign investment into Spain. To shore up international investor confidence, Spain needs to make its public debt more sustainable, a task that is currently more pressing given the potential for an increase in risk premium within the context of a normalisation of ECB monetary policy.
Autores: Maudos, Joaquín
Tags: Capital flows
EMU peripheral sovereign debt: Resilience in the face of monetary policy and geopolitical risks
Looming ECB policy normalisation will likely lead to the rebalancing of relative prices for EMU peripheral sovereign debt. Nonetheless, improved economic fundamentals, the ECB’s commitment to preventing fresh episodes of financial fragmentation and favourable prospects for European integration should help reduce the risk of episodes of intense stress in the eurozone sovereign debt markets.
Autores: Amor, José Manuel, Jiménez, Salvador, Pino, Javier
Tags: Peripheral debt
The recovery of the Spanish mortgage market
Spain’s mortgage market is recovering gradually in the wake of the pandemic, with new transactions outstripping loan repayments. This recovery, however, is very recent, and has not yet consolidated, with lingering and new sources of uncertainty affecting savings and borrowing patterns in ways that are difficult to gauge.
Autores: Carbó Valverde, Santiago, Rodríguez Fernández, Francisco
Tags: Mortgage market
Page 176 of 621