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In Catalonia, independence was never constitutional, there was

buy canada goose canada goose coats jacket Catalonia is no repeat of euro crisis buy canada goose jacket

LONDON (Reuters) Even though Catalonia bid for independence may be Spain Canada Goose Jackets worst political crisis in decades, it has been no Grexit, Brexit or even Frexit for Canada Goose Online foreign investors.

canada goose FILE PHOTO: canada goose uk black friday A Spanish flag flutters above the Madrid Stock Exchange, Spain, June 1, canada goose 2016. REUTERS/Juan Medina canada goose

Overseas holders of Spanish stocks and bonds and indeed owners of euro zone assets in general have been quick to dismiss Canada Goose online comparisons with a succession of rolling sovereign debt Canada Goose Parka crises that hit the euro zone between 2010 and 2012.

Canada Goose Outlet Even though Spain wealthiest region has a bigger economy than Greece, Portugal and canada goose store Finland, relatively unfazed Spanish and Catalonian assets to date shows markets are treating the crisis ovr Catalonia as a largely domestic issue with few if any systemic sovereign, banking or euro wide threats. The Spanish government’s 10 year borrowing costs as well as their Canada Goose sale risk premium over German equivalents are lower than where they started the year. The euro exchange rate has barely budged. Canada Goose Outlet

canada goose store On one level the scale of financial risk more than gross domestic output of the area is of a different order. canada goose store

Canada Goose online Catalonia debt level at around 77 billion euros is around quarter that of Greece. Canada Goose online

canada goose black friday sale In addition, 52.5 billion euros of canada goose coats that just over two thirds is owed to Spain, canadian goose jacket a further 8.175 billion euros to resident financial institutions, 6.018 billion euros to the rest of the world and 10.035 billion euros to others, according to the data from the Spanish central bank. canada goose black friday sale

Canada Goose sale The international exposure is too small to create ripples across the euro zone even in the event of a Catalonian default, and cheap Canada Goose the effect on Spain would also be limited. Catalonia total debt to the center represents just 4.75 percent of the Spain total debt as of the end of 2016. Canada Goose sale

Independence on its own canada goose clearance would neither lead to a sovereign default nor to an exit of a existing euro zone member, which caused consternation earlier in the decade given canada goose black friday sale fears of sovereign redenomination risk, related banking stress and legal precedents canada goose clearance sale that seeped across the bloc.

canada goose coats on sale Economic confidence and business risk for Spanish firms and households may be an issue at the margins for equity investors, but this canada goose uk outlet is largely cushioned at the moment by a booming world economy and the fastest economic expansion in the euro zone in more than six years. canada goose coats on sale

cheap Canada Goose The chances of secession itself were Canada Goose Coats On Sale always slim. One of the leading investors in Catalonian bonds buy canada goose jacket believes the region bid for independence was always legally doubtful. cheap Canada Goose

canada goose clearance was a very different story the very existence of Greece as part of the https://www.canadagoosesale.info monetary union was called into question. In Catalonia, independence was never constitutional, there was no legal basis, said Mark Dowding, senior portfolio manager at BlueBay Asset Management, which has been a long term investor in Catalonian debt. canada goose clearance

canada goose coats If ultimately Catalonia independence was always unlikely, canada goose factory sale the rest was just a in a teacup for financial markets, Dowding said. canada goose coats

canada goose deals Markets did attempt to re price different elements of the Spanish financial world but few of these moves were durable. canada goose deals

The gap between Catalonian ES0000950E= and Spanish ES0000126C= bonds widened rapidly to its highest level in over a year after the cheap canada goose uk banned Oct. 1 independence referendum, as investors fled from the troubled Canada Goose Outlet region debt.

Canada Goose Parka But now it has not only erased those losses but shrunk to its smallest since mid July, at 250 basis points. Canada Goose Parka

Canada Goose Jackets is very different from other crises the euro zone has faced recently, said Nadia Gharbi, an economist at Pictet Wealth Management. is very much an internal issue and a canada goose uk shop national question for Spain. We don think that, buy canada goose jacket cheap as things stand, it will lead to a systemic crisis. Canada Goose Jackets

canadian goose jacket equities have been the category that is most affected; Spanish bonds have seen a relatively modest impact and the euro has been mostly affected by the ECB, said Nicola Mai, an analyst and portfolio manager at Pimco, uk canada goose the world largest bond investor and an owner of Catalonian debt. canadian goose jacket

The European Central Bank ongoing monetary stimulus and bond buying program helped to subdue some potential uk canada goose outlet volatility.

All South European government debt seen as major beneficiaries of the ECB largesse have been in demand since and Spain 10 year borrowing costs are a good 13 basis points below the level before canada goose coats on sale the Oct. 1. referendum.

buy canada goose jacket cheap investors you in an environment which frankly looks pretty benign from a volatility perspective, said Andrew Mulliner, portfolio manager at asset manager Henderson. buy canada goose jacket cheap

canada goose clearance sale Spain was one of the countries that suffered during the euro zone debt crisis of 2010 2012, seeing its debt level jump from 29 percent of GDP to 99 percent currently after having to accept a bailout from the European Union to rescue its banks canada goose clearance sale.

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