While Spanish banks have launched a stream of guaranteed issues, Dresdner Kleinwort analysts said, those hoping for this to signal a sufficient buying interest in Spanish names, which would potentially also help the Cedulas (covered bond) market stage a revival, are likely to be disappointed.

Six Spanish state-guaranteed bank bonds have come to the market within the past three weeks. Former issuers (Caja Madrid, Popular, Bankinter, Pastor and Caixa Catalunya) all opted not only for the maximum three-year maturity allowed for guaranteed paper but also for a pricing within the same spread range of 75 basis points to 85 basis points over swaps.  

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