Spanish Fixed-Income and Variable-Income Markets

Fixed-Income Market: Includes fixed income securities. Usually bonds which have a fixed interest with a certain maturity.

– This market allows companies to issue securities (traded assets such as bond and obligations. This market allows the disintermediation of savings.

– In the fixed income markets companies can issue bonds or obligations, which are like little pieces of loans. Instead of asking a bank for money, they go directly to savers. In order to trade securities in the market, they need a rating for these assets by rating agencies. In Spain the bonds that you usually find are treasury bonds. In Spain only big companies can get a rating, and therefore issue bonds (rating is expensive and not every company can therefore issue bonds).

– Spanish sovereign bonds are rated Baa1 (Moody’s), A- (S&P) y A- (Fitch): they have an acceptable amount of risk. Any security with a rating below BBB- (S&P) OR Baa3 (Moody’s) is speculative grade.

– The Spanish fixed income market is among the largest in the world (mostly due to treasury bonds). According to the BIS, it ranks 9th worldwide. The Treasury Bond market is by far the largest fixed-income market in Spain.

– In 2002, the holding company Bolsas y Mercados Españoles (BME) was created. This company manages all secondary market companies: Stock Exchanges, the fixed-income market AIAF, the MEFF Futures and Options Market, and the Bank of Spain’s public debt market.

– Public debt (sovereign debt) in Spain is currently assigned the following ratings: Baa1 (Moody’s), A- (S&P) and A- (Fitch).

– Autonomous Communities have barely enjoyed access to the market since 2012. FLA

Variable-income market: The Stock Exchange: No such thing such as a fixed interest, because we are talking about shares. It is a form of financing for the company. They go to the stock exchange and they issue shares which people buy. In exchange investors get the property of the shares (become shareholders), so they can get a proportion of the profits of the shares. Profits may vary every year, so this is why we call it a variable income market. Companies can issue shares in the primary or secondary market.

– The Spanish Stock Exchange is one of the oldest institutions of the Spanish economy: it was founded in 1831.

– Presently some 130 stocks are listed at the Bolsa. In 2007 a peak was reached of 165.

– Stock Exchange capitalization accounts for 50% of GDP, similar to France or Italy.

– The Bolsa fulfills two roles:

1) The primary market allows direct financing through share issues by listed companies, via public offers. These offers may consist in a public sale offering or an initial public offering (IPO).

2) The secondary market provides liquidity and a valuation of stocks. Special case: takeover bids (where shares are sold after being bought). Takeover bids in Spain called OPAS. In case an investor wishes to hold more than 30% of the capital in a company, he can do so but he has to make an offer to hold 100% of the shares in a company. That is because, when investors bought their shares, they were thinking of a management think that was there and they liked. But if a new investor comes in and starts to buy shares, and wishes to control management of the company, this investor has to give all previous shareholders the opportunity to sell their shares.

– Having your shares publicly quoted in the stock exchange is very expensive, because one of the requirements of having public quotation is that you have to be very transparent. You have to publish your accounts every quarter and every semester and give a lot of information to investors, and each time there is any change in your company, you have to give notice of that change to the regulator. This means that there has to be a lot of people working.

So medium and small size companies cannot afford to be publicly quoted in the stock exchange, and that is why a smaller stock exchange was created (MAB).

– The MAB (Mercado Alternativo Bursátil) is a smaller stock exchange, fit for smaller-sized companies with lower capitalization, that cannot afford the costs of a full-fledged listing (it has lower requirements). Among 40 Spanish companies are presently quoted in the MAB.

8. Supervision and Regulation

Supervision and regulation of financial institutions and markets are carried out by the following bodies:

1 Banco de España: In addition to being the national pillar of the Eurosystem, it carries out financial supervision under the guidelines and control of the ECB. When we talked about the European Banking Union, we said that pillar number 1 was common supervision and regulation, and that the ECB was given the role of single supervisor and regulator of our financial system. The ECB is seated in Frankfurt and relies on national central banks to help out in this responsibility of supervising and regulating banks. In the case of Spain, Banco de España helps the ECB.

2. European Central Bank: Supervises and regulates banks with assets of over €30 bn. Supervision and regulation focuses on solvency (capital levels), profitability, liquidity, governance, behavior, and resilience to adverse shocks (for example stress tests: test of how a bank’s main indicator behaves when scenarios change. For example with the coronavirus crisis, the ECB is setting out to carry out new stress tests to see if they will survive in a scenario where global growth rates of countries will go down dramatically, consumption will go down, risks will go up… That is what stress tests are: stressing scenarios by imagining that things will get worse and calculating what will happen in terms of bank accounts) (For banks with a lower amount of assets, the Bank of Spain is the only responsible).

3. The Single Resolution Mechanism of the EU deals with banking resolution (what to do in case of inadequate capital levels). Which is the second pillar of the European Banking Union, and this one deals with what to do with a bank if it does not meet capital adequacy requirements and so on.

4. Comisión Nacional del Mercado de Valores (CNMV): Its main function is to ensure transparency of the Spanish securities markets, and the correct formation of prices, as well as the protection of investors; making sure that nobody is committing a major crime in these markets, which is insider trading (uso de información privilegiada).

5. Dirección General de Seguros y Fondos de Pensiones, in charge of regulating and supervising insurance companies and pension funds.



– dimension reducida de empresas

– formacion de mano de obra superior

– menos avances en productividad

– menos innovacion

causas crecimiento

– acompañan a otros sectores

– aumenta la renta de consumidores

– incorporacion mujer al trabajo

– externalizacion

– introduccion sectores nuevos

intervencion y liberalizacion

– gobierno ha limitado competencia como creacion monopolios, concesiones y licencias

administracion ha tratado de liberar los ss

– UE quiso abaratar ss para conseguir mercado unico – directiva Walkenstein



– primera industria nacional- 11,7% PIB, 12,8 emp

– mayor proporcion PIB

– balanza de pagos- super habitaria

– act estacional, no incentivo formacion

– litoral mediterraneo

– principales Reino unido, Francia, Alemania

– sol y playa pero promover turismo con valor añadido (golf)

evolucion historica

paradores, 1951 ministerio tur e info

86 auge tur español

90 competidores y se devaluo peseta

ingresamos eurozona- precios subieron y bajo demanda

ajustes precios y modernizacion del sector

politica turistica

-aumentar oferta a cualquier precio e incidir sol y playa

– diversificacion oferta (reduce concentracion geo y temporal)

-En este momento los países emergentes están incrementando su oferta turística, por eso es importante que la oferta turística española pueda seguir siendo competitiva en precios. En planes turísticos que hemos tenido hasta ahora es el Plan Turismo Horizonte 2020, pero ahora se ha diseñado el Plan de Turismo Sostenible 2030 que gira en torno a 5 ejes: – –

  • gobernanza colaborativa,
  • crecimiento sostenible
  • transformación competitiva y rentabilidad del sistema
  • producto e inteligencia turística
  • personas, empresas y territorio.