{"id":10149,"date":"2016-08-03T12:15:00","date_gmt":"2016-08-03T09:15:00","guid":{"rendered":"http:\/\/bestinsurance.gr\/a1\/?p=10149"},"modified":"2016-08-03T12:15:03","modified_gmt":"2016-08-03T09:15:03","slug":"ecbs-bond-buying-boosts-parts-of-the-market-it-cant-even-touch","status":"publish","type":"post","link":"https:\/\/bestinsurance.gr\/a1\/archives\/10149","title":{"rendered":"ECB\u2019s Bond Buying Boosts Parts of the Market It Can\u2019t Even Touch"},"content":{"rendered":"<div data-animation=\"no-animation\" data-icons-animation=\"no-animation\" data-overlay=\"\" data-change-size=\"\" data-button-size=\"0.7\" style=\"font-size:0.7em!important;display:none;\" class=\"supsystic-social-sharing supsystic-social-sharing-package-flat supsystic-social-sharing-content supsystic-social-sharing-content-align-left\" data-text=\"\"><a data-networks=\"[]\" class=\"social-sharing-button sharer-flat sharer-flat-1 counter-arrowed facebook\" target=\"_blank\" title=\"Facebook\" href=\"http:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fbestinsurance.gr%2Fa1%2Farchives%2F10149\" data-main-href=\"http:\/\/www.facebook.com\/sharer.php?u={url}\" data-nid=\"1\" data-name=\"\" data-pid=\"1\" data-post-id=\"10149\" data-url=\"https:\/\/bestinsurance.gr\/a1\/wp-admin\/admin-ajax.php\" rel=\"nofollow\" data-mailto=\"\"><i class=\"fa-ssbs fa-ssbs-fw fa-ssbs-facebook\"><\/i><div class=\"counter-wrap arrowed\"><span class=\"counter\">0<\/span><\/div><\/a><a data-networks=\"[]\" class=\"social-sharing-button sharer-flat sharer-flat-1 counter-arrowed twitter\" target=\"_blank\" title=\"Twitter\" href=\"https:\/\/twitter.com\/share?url=https%3A%2F%2Fbestinsurance.gr%2Fa1%2Farchives%2F10149&text=ECB%E2%80%99s+Bond+Buying+Boosts+Parts+of+the+Market+It+Can%E2%80%99t+Even+Touch\" data-main-href=\"https:\/\/twitter.com\/share?url={url}&text={title}\" data-nid=\"2\" data-name=\"\" data-pid=\"1\" data-post-id=\"10149\" data-url=\"https:\/\/bestinsurance.gr\/a1\/wp-admin\/admin-ajax.php\" rel=\"nofollow\" data-mailto=\"\"><i class=\"fa-ssbs fa-ssbs-fw fa-ssbs-twitter\"><\/i><div class=\"counter-wrap arrowed\"><span class=\"counter\">2<\/span><\/div><\/a><\/div><p>ECB\u2019s Bond Buying Boosts Parts of the Market It Can\u2019t Even Touch.Even companies with no credit rating in a country that\u2019s home to the worst-performing bond market in Europe are eyeing cuts to their borrowing costs.<br \/>\nSome corporate borrowers in Portugal are aiming to cash in on demand among some investors for riskier, higher-returning assets by refinancing their debt at a lower interest rate or with more time to repay it. While they don\u2019t qualify for the European Central Bank\u2019s bond-buying program, it\u2019s further evidence the billions of euros being pumped into the system every month is penetrating all corners of the market.<\/p>\n<p>\u201cThere is growing demand for unrated or junk corporate bonds in Portugal precisely because they usually offer higher returns than the securities that qualify for the ECB program,\u201d said Antonio Fonseca, a trader at Probolsa in Lisbon who buys and sells non-investment grade Portuguese corporate bonds. \u201cThe appetite for these bonds is definitively there.\u201d<\/p>\n<p>expander_maker more=&#8221;\u0394\u03b9\u03b1\u03b2\u03ac\u03c3\u03c4\u03b5 \u03c0\u03b5\u03c1\u03b9\u03c3\u03c3\u03cc\u03c4\u03b5\u03c1\u03b1&#8221; less=&#8221;\u0394\u03b9\u03b1\u03b2\u03ac\u03c3\u03c4\u03b5 \u03bb\u03b9\u03b3\u03cc\u03c4\u03b5\u03c1\u03b1&#8221;]On the euro region\u2019s indebted periphery and a little over two years since it exited an international bailout program, Portugal is a bellwether for how far bonds might go this year. The nation remains Europe\u2019s worst-performing sovereign market this year, even though it turned the corner over the past month with a rally wiping out losses.<br \/>\nRate Halved<br \/>\nSemapa-Sociedade de Investimento e Gestao SGPS SA, which controls paper and pulp maker The Navigator Company SA and has no credit rating, sold 100 million euros ($112 million) of bonds in a private placement on June 2 as part of a plan to refinance its debt. The seven-year securities were priced to yield 2.68 percent. In March 2012, it paid 6.85 percent to borrow 300 million euros for three years.<br \/>\nCompanies with a solid balance sheet can benefit from the ECB bond-buying program regardless of their rating, Chief Financial Officer Jose Miguel Paredes said this week by e-mail in response to questions.<br \/>\nMota-Engil, Portugal\u2019s biggest construction company, is looking to lock in lower borrowing costs by taking advantage of the appetite for risk, a spokesman said. The company, which is also unrated, priced five-year bonds to yield 5.5 percent in 2014 and then 3.9 percent for securities of a similar maturity last year, data compiled by Bloomberg show.<br \/>\nRetailer Sonae SGPS SA said it aims to lower the cost of its debt and increase the average maturity.<br \/>\nBuying Risk<br \/>\nECB President Mario Draghi\u2019s multi billion-euro corporate bond buying program, which began on June 8, is part of the central bank\u2019s attempt to stoke inflation and lower financing costs across the euro area.<br \/>\nThe purchases of investment-grade securities have sent the average yield for euro notes tumbling to a record 0.7 percent on Friday, according to a Bank of America Merrill Lynch index. Yet junk bonds have also rallied, with the average yield falling to 4.2 percent, the lowest in more than a year.<br \/>\n\u201cInvestors looking for yield, both institutional and retail, are being pushed into riskier debt such as sub-investment grade Portuguese debt,\u201d said Nicholas Wall, a money manager in London at Old Mutual Global Investors, which oversees 27 billion pounds ($36 billion) of assets.<br \/>\nSource :\u00a0<a href=\"http:\/\/www.bloomberg.com\/news\/articles\/2016-08-02\/ecb-s-bond-buying-boosts-parts-of-the-market-it-can-t-even-touch\">link<\/a><\/p>\n<p><a href=\"http:\/\/bestinsurance.gr\/a1\/wp-content\/uploads\/2016\/08\/1x-1.png\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-10148 alignnone size-full\" src=\"http:\/\/bestinsurance.gr\/a1\/wp-content\/uploads\/2016\/08\/1x-1.png\" alt=\"\" width=\"1200\" height=\"635\" srcset=\"https:\/\/bestinsurance.gr\/a1\/wp-content\/uploads\/2016\/08\/1x-1.png 1200w, https:\/\/bestinsurance.gr\/a1\/wp-content\/uploads\/2016\/08\/1x-1-300x159.png 300w, https:\/\/bestinsurance.gr\/a1\/wp-content\/uploads\/2016\/08\/1x-1-1024x542.png 1024w, https:\/\/bestinsurance.gr\/a1\/wp-content\/uploads\/2016\/08\/1x-1-260x138.png 260w\" sizes=\"auto, (max-width: 1200px) 100vw, 1200px\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<div data-animation=\"no-animation\" data-icons-animation=\"no-animation\" data-overlay=\"\" data-change-size=\"\" data-button-size=\"0.7\" style=\"font-size:0.7em!important;display:none;\" class=\"supsystic-social-sharing supsystic-social-sharing-package-flat supsystic-social-sharing-content supsystic-social-sharing-content-align-left\" data-text=\"\"><a data-networks=\"[]\" class=\"social-sharing-button sharer-flat sharer-flat-1 counter-arrowed facebook\" target=\"_blank\" title=\"Facebook\" href=\"http:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fbestinsurance.gr%2Fa1%2Farchives%2F10149\" data-main-href=\"http:\/\/www.facebook.com\/sharer.php?u={url}\" data-nid=\"1\" data-name=\"\" data-pid=\"1\" data-post-id=\"10149\" data-url=\"https:\/\/bestinsurance.gr\/a1\/wp-admin\/admin-ajax.php\" rel=\"nofollow\" data-mailto=\"\"><i class=\"fa-ssbs fa-ssbs-fw fa-ssbs-facebook\"><\/i><div class=\"counter-wrap arrowed\"><span class=\"counter\">0<\/span><\/div><\/a><a data-networks=\"[]\" class=\"social-sharing-button sharer-flat sharer-flat-1 counter-arrowed twitter\" target=\"_blank\" title=\"Twitter\" href=\"https:\/\/twitter.com\/share?url=https%3A%2F%2Fbestinsurance.gr%2Fa1%2Farchives%2F10149&text=ECB%E2%80%99s+Bond+Buying+Boosts+Parts+of+the+Market+It+Can%E2%80%99t+Even+Touch\" data-main-href=\"https:\/\/twitter.com\/share?url={url}&text={title}\" data-nid=\"2\" data-name=\"\" data-pid=\"1\" data-post-id=\"10149\" data-url=\"https:\/\/bestinsurance.gr\/a1\/wp-admin\/admin-ajax.php\" rel=\"nofollow\" data-mailto=\"\"><i class=\"fa-ssbs fa-ssbs-fw fa-ssbs-twitter\"><\/i><div class=\"counter-wrap arrowed\"><span class=\"counter\">2<\/span><\/div><\/a><\/div><p>ECB\u2019s Bond Buying Boosts Parts of the Market It Can\u2019t Even Touch.Even companies with no credit rating in a country that\u2019s home to the worst-performing bond market in Europe are eyeing cuts to their borrowing costs. Some corporate borrowers in Portugal are aiming to cash in on demand among some investors for riskier, higher-returning assets<\/p>\n","protected":false},"author":1,"featured_media":10148,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[1],"tags":[],"class_list":["post-10149","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-1"],"jetpack_publicize_connections":[],"_links":{"self":[{"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/posts\/10149","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/comments?post=10149"}],"version-history":[{"count":2,"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/posts\/10149\/revisions"}],"predecessor-version":[{"id":10151,"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/posts\/10149\/revisions\/10151"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/media\/10148"}],"wp:attachment":[{"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/media?parent=10149"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/categories?post=10149"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/tags?post=10149"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}