A UBS report on investing in Spanish government debt, issued September 25, may need to revise its thesis. After under-performing the market due to political concerns, the report said it might be time for institutional investors to consider Spanish government debt offerings – particularly on a relative value basis with German and Italian government debt. However, the investment thesis was based on a somewhat ambiguous political result. Watch for a 135 point basis point German / Spanish bond differential to close In a report titled “When to buy Spanish bonds (and when not to),” analysts believed the spreads between Germany’s…
Spanish Elections Complicate UBS Recommended Bond Trade
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.