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A Mission From The Imf Is Visiting Spain Tomorrow

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MADRID (Reuters) - A mission from the International Monetary Fund (IMF (Berlin: MXG1.BE - news) ) will visit Spain on Monday to carry out a routine study of the country's financial system, as part of an annual global report, a government official said on Sunday.

Concerns over Spanish banks' exposure to the collapsed property market remain acute and are major reasons behind market distrust of Spanish and other poorly performing countries on the fringes of the euro zone.

But the Economy Ministry said there was nothing out of the ordinary about the IMF visit.

"It's an ordinary visit carried out by the IMF as part of its global financial stability report, the same kind as it as carried out in other countries," a ministry spokeswoman said.

The mission will visit the Economy Ministry, Bank of Spain and major banks, newspaper El Mundo said.

The Prime Minister's office declined to comment. The Bank of Spain was not immediately available for comment.


Just there to dot a few i's and cross a few t's

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no one expects the Sanish IMFmission.

Chapman: Trouble at mill.

Cleveland: Oh no - what kind of trouble?

Chapman: One on't cross beams gone owt askew on treadle.

Cleveland: Pardon?

Chapman: One on't cross beams gone owt askew on treadle.

Cleveland: I don't understand what you're saying.

Chapman: [slightly irritatedly and with exaggeratedly clear accent] One of the cross beams has gone out askew on the treadle.

Cleveland: Well what on earth does that mean?

Chapman: *I* don't know - Mr Wentworth just told me to come in here and say that there was trouble at the mill, that's all - I didn't expect a kind of Spanish Inquisition.


[The door flies open and Cardinal Ximinez of Spain [Palin] enters, flanked by two junior cardinals. Cardinal Biggles [Jones] has goggles pushed over his forehead. Cardinal Fang [Gilliam] is just Cardinal Fang]

Ximinez: NOBODY expects the Spanish Inquisition! Our chief weapon is surprise...surprise and fear...fear and surprise.... Our two weapons are fear and surprise...and ruthless efficiency.... Our *three* weapons are fear, surprise, and ruthless efficiency...and an almost fanatical devotion to the Pope.... Our *four*...no... *Amongst* our weapons.... Amongst our weaponry...are such elements as fear, surprise.... I'll come in again.

[The Inquisition exits]

Chapman: I didn't expect a kind of Spanish Inquisition.


Edited by Bloo Loo
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I am certain beyond any doubt and 100% convinced that they want us to beleive its contained.

With Hedgies betting China is wobbling and the Eurozone about to go into another panic the smart money might do what it usually does and find its way into the US bond market and US $$. I hope so. ;)

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IMF there today and Spain cancel a bond auction planned for Thursday.

Facing a volatile market as it looks for ways to keep its debt costs under control, Spain's Treasury cancelled a bond auction planned for Thursday and said it would issue a syndicated bond over 10 years.


A bit about syndicated bonds here

The term has been around for a little while now, but only recently has the concept of a syndicated bond been commonplace in news stories, and it seems to have arrived without anybody explaining what it is.

Most of the references to syndicated bonds are coming from Greece these days, so I phoned up George Georgiopoulos, Reuters’s man in Athens, and got him to explain them to me.

The confusing thing here is that only sovereigns issue syndicated bonds, because only sovereigns don’t issue syndicated bonds.

OK, let me try again. As a base case, essentially all bonds are syndicated. If a company wants to issue bonds, it will find a group of banks to underwrite its bond issue and sell those bonds to investors. And if a sovereign wants to issue bonds in a foreign currency, it will do the same thing. None of these bonds are ever referred to as “syndicated bonds”, though — they’re just old-fashioned bonds, or global bonds, or whatever. The existence of a bookrunner and an underwriting syndicate is simply taken for granted.

The exception to that rule is when governments issue debt in their own currency. Normally, that kind of thing is handled through auctions, where a group of primary dealers, who promise to make a market in government debt, bid on new issuance. It’s always possible, however, that such an auction might fail, and that the government won’t be able to issue all the debt that it wants, for lack of bids from the primary dealers.

So Greece has started issuing occasional syndicated bonds, where it does just what companies do when they want to issue debt: it gets a small syndicate of banks together, and the banks underwrite the bond, promising to buy it if there aren’t enough bids in the market. Then they go out and build a book and sell the bond to investors just like they would with a corporate issue. This way of doing things guarantees that the government will be able to sell all the bonds it wants to sell.


Spain managed a bond auction last week but don't seem to have much confidence in managing it this week. Never mind the banks will step in now.

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