Por ahora, la prima de riesgo es la rentabilidad adicional que la inversión aporta al Username en función del riesgo que tiene que asumir en cada momento. Bueno, la prima de riesgo en España en este momento es almost 80 basis points. What does this mean? Well, something as simple as that is the differential between the Spanish and German debt. Why precisely the Teutonic? Well, because it is the one that offers the greatest security to investors. At the same time, you have a credit rating that is the most competitive of all. And that is why it acts as a point of reference for all European countries. To the point of representing one of the strongest data in the international economy.
As a consequence of these calculations, the 80 basis points are represented, which is the risk premium in Spain at the moment. Because in effect, the benchmark is the German 10-year bond, which is currently trading at approximately 0.50%. While on the contrary, the Spanish bond at the same maturity is at 1,30%. Si hace los cálculos con rigor, llegará a la conclusión de que la prima de riesgo en este momento es de los 80 puntos básicos antes mencionados. Como habrás visto, no es tan complicado de descifrar y en cambio puede ayudar mucho a desarrollar cualquier strategy de inversión.
Risk levels in a country
With such a high risk premium, the financial markets of variable income they act downward. Among other reasons because there is no confidence in the economy of a country. With what the stock market does not stop falling and falling, even to reach minimum levels, as it has happened years ago with the main national stock indices. In this regard, if the risk premium rises considerably, it will be the perfect excuse to abandon any operation on the stock market. Because certainly the price of your shares will depreciate considerably. In other words, you have all the ballots to leave many euros on the way.
Low risk premium
On the contrary, a low risk premium, or at least tolerable, below 100 basis points is a clear sign of confidence in Spanish equities. This sentiment carries over because there is a lot of confidence in the Spanish economy. In fact, you can see that each time the low-risk premium is accompanied by rises in the stock markets. And on the contrary, when it rises the effect is the opposite. In other words, stocks on the stock market depreciate. So it's a little trick you can use to make your savings profitable from now on. Above other investment strategies, even if they are fully satisfactory for your personal interests.
Although we are talking about the Spanish economy, it can be tremendously applied to another country in our immediate environment. Although, of course, they will have a different risk premium than ours. As in the specific cases of Italy, France, Holland or Portugal, among some of the most relevant. In any case, it is a piece of information that is traded every day in the financial markets. In the same way as with the values of the shares, with daily fluctuations that can give some clue as to what the real state of the shares is. public debt. Therefore, it is not advisable to minimize this data that the international economy offers you.
Impact on fixed income
It is true that the effects of the risk premium are mainly reflected in fixed income. And very especially to the Spanish bonds that affect the decisions that you are going to make from now on. In the event that the risk premium is very moderate, it will be the signal that it is time to buy peripheral debt and under what conditions. And in the opposite direction by the different movements. As you will see, the investment strategy that you must apply is very simple and will not offer you excessive complications in its formalization.
At the same time it affects investment funds since peripheral bonds are more sensitive to these stocks. It is not surprising that this class of financial products is closely linked to the evolution of the so-called risk premium. In this regard, one of the products most affected by the excessive rise in the risk premium are investment funds basado en enlaces periféricos. Por las razones que se han explicado anteriormente y que habrás comprendido con la máxima intensidad. Pero los fondos de inversión no son los únicos afectados por esta variable económica de especial relevance.
Other banking products
A more or less low risk premium will be very favorable for your interests since you will be able to obtain a most competitive interest rate than before. And the same in the opposite direction, as is logical to understand. Therefore, it is very important it is important it is important that you know that this variable is not limited to a specific financial market. If not, it ends up affecting everyone in the end. Because it is about measuring the credibility of a country. In other words, if the spread in Spain is only 50 basis points, it will be a sign that there is confidence in the Spanish economy. And it is time to invest in national public debt above all else.
How does it affect savings?
In any case, you will already get a little clearer what is the context in which the risk premium moves. So that in this way you can make your personal or family assets profitable depending on the situation that is created at all times. But above all about what you should not do when this economic variable exceeds the most dangerous limits on its price. Which is one of the biggest risks to which small and medium investors are exposed. But that you can get around them through a rational and balanced investment strategy, which after all is what it is in those difficult times.
Finally, it is important to note that the risk premium varies from day to day and you will have no choice but to be very attentive to check its evolution in the financial markets. Because to some extent the money you have saved so far will depend on this action. Giving you more clues about what to do than you initially thought. With a utility in your decisions more than remarkable from any point of the track. Whatever the investor profile you present at all times.
