Monday, 17 September 2012

Spain's July 2015 Bond Has Value -Credit Agricole


Spain's July 2015 bond has value says Credit Agricole, adding that the bond has been richening in recent weeks but it still has "decent value" against slightly shorter-dated bonds. With the Spanish Treasury set to launch a new series of three-year bonds at auction Thursday, with maturity in October 2015, older three-year bond may benefit from slowing supply, says CA. "Without the burden of the supply going forward, we would buy the Bono [Spanish bond with up to five years of original maturity] 4% July 2015 and [switch] out of the 3% April 2015 for a yield pick up of 22bp, targeting a move to 15bp and a stop of 25bp."        

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