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NatWest Like Spanish/French 7-Year Tighteners


NatWest note that “Spanish political risk is low and skewed positively. Economic fundamentals are strong. Ratings should eventually follow. Yields 50bp over France in 10y+ for better debt metrics and the same volatility are a good story. The focus a big election brings on economic fundamentals is more likely to be a positive than a negative.”

  • As such, they recommend buying 7y SPGBs vs. the French equivalent at 42bp. They look for spread compression to 31bp and expect to hold the position for the rest of the year.
MNI London Bureau | +44 0203-865-3809 |
MNI London Bureau | +44 0203-865-3809 |

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