The Spanish Securities Commission (CNMV) published its third-quarter bulletin, finding that record euro debt issuance by hyperscalers, or cloud providers, has so far had a limited impact on interest rates. The assessment highlights rising sovereign bond yields and elevated equity valuations, including in Spain despite recent corrections. Yields on sovereign bonds with maturities of 10 years have increased significantly across major advanced economies, reaching levels not seen for 20 years in some cases. Evidence points to higher real interest rates and, in some countries, increased sovereign risk as the drivers. Corporate credit spreads have nevertheless remained contained, and markets for private sector debt have maintained substantial capacity to absorb issuance. Although cloud providers have increased their euro debt issuance significantly, volumes appear insufficient to exert substantial upward pressure on interest rates. Spain’s Ibex 35 remains elevated after retreating from its record high in August. Its gain of more than 12% this year places it among Europe’s best-performing indices, while equity valuations remain high across several markets and sectors. A separate analysis finds that collective investment vehicles registered in Spain have low leverage overall and moderate levels even in the most extreme cases, with leverage significantly below that of vehicles in other countries.
Spanish Securities Commission finds limited interest rate impact from record euro debt issuance by cloud providers
The Spanish Securities Commission’s third-quarter bulletin finds that record euro debt issuance by cloud providers has so far exerted limited pressure on interest rates despite a broader rise in sovereign yields. Spain’s Ibex 35 remains elevated after recent corrections and has gained more than 12% this year. A separate analysis finds low leverage among collective investment vehicles registered in Spain, significantly below levels in other countries.