| Headline: Portugal - The quest for domestic investors Source: Euromoney Date: March 2000 Author: Peter Wise For Portugal, like other smaller European government borrowers, the euro is proving a double-sided coin. Sovereign debt issued in the single currency is attracting welcome new non-resident investors. However, the domestic funds that once sustained trading volume have diversified into other euro markets. Peter Wise reports Strong economic growth, syndicated sovereign debt issues and the highest spread on treasury bonds in the eurozone have helped Portugal face up to increased competition as a government bond player on a pan-European level.
"We have seen domestic investors exchange the higher spreads available in Portugal for the greater liquidity offered by bigger European markets," says António Catana, head of fixed-income trading with Banco Português de Investimento. |