Spanish Elections Complicate UBS Recommended Bond Trade

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Mark Melin
Published on
Updated on
UBS 9 28 spanish ten year yields

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…

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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.