As the risk premium and Treasury interest rates fall, Spanish companies are also lowering the interest that they pay on corporate debt.
Investors that betted on Spanish companies in the first quarter are getting good returns. They bought when prices were low, and now they are rising. In total, more than half of the debt that was issued in 2013 is earning around 2% on average.
If international news events, such as the conflict in Syria, do not change the global political and economic climate, analysts think that Spanish corporate debt and national treasuries will continue to fall in price over the next several months.
Investors will still make money, although not as much.
