It could not spend too much time without the second biggest bank of the country coming also to the particular investor to ask for funds to improve his solvency ratio, as it did not long ago more than one month the Bank Santander with his increase in capital.
In this one I marry, the system chosen by the BBVA has been of expressing preferable shares. These will not teach of rights the investor, but yes that offers him very suitable profitability and that in this case has concentrated in 6,5 % fixed for the first two years, and from the euribor until three months for the following years, with a minimum on this time of 3,5 %.
It does not have a definite pay-off period, although the BBVA will be able to begin to amortize them from the fifth year in which they have gone out to the market.
The profitability that it offers facing the investor is very good compared with the bank products (long-term deposits) that actulamente exist on the market, especially if we bear in mind that the interest rates are going to keep on going down in the next year. To insure itself 6,5 % during next two years is a very good offer, undoubtedly, from this point of view.
But also it is necessary to have clear certain things. If we buy these preferable rights and decide to leave of them and to sell them before the proper bank amortizes them, we will have to come to the secondary markets, to that of Fixed Revenue, and it is in this moment when we will have to adapt ourselves at the price that these shares mark, which might be below the price of current buy, with which this reantabilidad would stop being such, and we would have loss. It is necessary to be clear that on the current market there are options of the same type that they are quoting much underneath of his value of acquisition. The liquidity of this emission might become closer therefore if the situation deteriorates.
Also, the profitability that these shares offer they are tied to that the BBVA obtains benefits. And it is not that we could doubt of a reliable entity how it it is the BBVA, but it is already one more important determinant in a few times like the current ones of so much suspicion.
How we see, in normal conditions it is a question of a very good investment option, also in a reliable bank and of future, but in the current times the preferable shares of the BBVA take a factor of additional risk that is the one that we have to value at the time of deciding if we want to invest in them.
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