Portuguese debt attractive to overseas investors says BNP Paribas chief
BNP Paribas, which has the largest market trading platform operating in Portugal, believes there is increasing interest in the Portuguese market from overseas investors, both for bonds, securities and shares, believing that Lisbon is now on a par with the main trading markets in the world.
Head of Global Markets at BNP Paribas Portugal, Diogo Malato Moura, who heads a market trading room that employs 400 staff that caters to both national and International investors, has no doubt that there is a growing interest in Portuguese assets.
“When we look at the Portuguese economic indicators – with growth above the European Union (EU) average, with inflation that seems to be falling in a controlled way, as well as healthy public accounts – all these are attractive factors that make international investors look more at the Portuguese market,” he said in the interview with Negócios.
“There is increasing interest in the Portuguese market”, although “within what the turnover and liquidity that the national financial market provides”, said the head of global markets of the largest investment bank operating in Portugal.
Among the various asset classes, Portuguese public debt (sovereigns) is most in demand, but national stocks are also already on the menu for foreign investors. “Public debt is clearly more interesting, because it’s been a success story in terms of ratings,” he continued.
Looking at the spread between Portuguese debt interest and the yield of the German Bundes, Diogo Malato Moura assesses that it is “at such a good level that it would be difficult to improve on”.
On the other hand, he doesn’t foresee a sudden flight of investors” from the purchase positions of Portuguese debt “ since Portuguese debt is so stable.
He also thinks green and blue bonds will continue to be sought after, while shares are also gaining interest from overseas investors, especially when floated on the national sock market within a global context.
“There is a total and complete connection between the Portuguese stock exchange and the European and North American stock exchanges. There is an interconnectivity between all world exchanges, and therefore the fact that we follow this trend proves that most investors are international and are interested,” he said.
