Last quote by David Schnautz
David Schnautz quotes
Even if (acting Prime Minister) Mariano Rajoy is able to form a minority government, policy making is still going to be very challenging.
So who do you punish more - the debt sinner or the deficit sinner?
Spain is running a deficit of 4.6 percent compared to 2.4 percent for Italy, even if it has less debt. So who do you punish more - the debt sinner or the deficit sinner?
I think the market now believes the investment grade rating should survive, and we tend to that view as well. It remains to be seen if this is just a feel good environment or if it is justified.
Though the mechanics of the bad bank are still unclear, at the very least they are dealing with issue head on.
It was the right decision to go with the seven-year and avoid pricing below the deposit rate.
It would be the icing on the cake for investors who have come to accept that you don't get money back on your investment.
Overall the pool of bonds with negative yields remains huge and is still unattractive for investors.
Bund auctions are usually an accident-prone event, but today there are no signs of any risks whatsoever and that's certainly encouraging heading into the ECB meeting.
We don't think it will end up with the world economy coming off a cliff.
From the point of view of the markets in this moment there is clearly the fear that it will not only be Greece but that it's Portugal, the second weakest link of the chain, that's in the firing line.