Election opportunity for Spanish bonds
TLT•Goldman Sachs says Spanish sovereign debt could re-rate if the November 29 election delivers a clear majority government, as polls show the centre-right Partido Popular leading ahead of the vote.
1. Potential bond re-rating
Opinion polls point to a Partido Popular (PP)-Vox coalition securing a comfortable parliamentary majority in Spain’s November 29 election, potentially replacing Pedro Sanchez’s incumbent PSOE government. Goldman Sachs says a new coalition would likely pursue faster debt reduction through fiscal consolidation, remove sector-specific levies including the bank tax, and facilitate private residential investment while tightening immigration policy. The bank said Spanish sovereign debt could re-rate if the election delivers a clear majority government.
