Spanish companies have sold new rounds of corporate debt after six months of no sales due to elevated interest rate costs.
Mario Draghi, by announcing that the ECB would buy unlimited amounts of near-term sovereign debt from strugling European countries, started a period of volatility that hte countries have been able to take advantage of.
Banco Santander and Telefónica were the first to take the initiative, even before the ECB announced its plan. They issued the debt as the risk premium bottomed out, and yesterday BBVA, Banesto, Iberdrola, Gas Natural and ICO are also prepared to sell a total of 9.85 billion euros in debt during the next few days. The selling frenzy shows that the selling break is over and stability needs to return.
