Who is BES? This is quite an easy question to answer: it’s the 2nd largest private financial institution in Portugal and the 9th company in PSI, ordered for capitalization.
Ok. Someone can explain this?
Take a look at the volumes below the chart (…)
- 9th of July, Downgrade by Moody’s to Caa2 from B2;
- 10th of July, the market doubts about capacity of Bes to contain the missed payments;
- 18th of July, Portugal’s Central Bank tests Santander interest in investing in Bes;
- 19th of July, Bes aks for help (is it too late?);
- 22th of July, Central Bank asks to Bes for a urgent and anticipated appointment of new CEO and CFO.
Firsts Consequences on financial markets:
- Bund rates fall again to record low-Yield
- Bond rates jumps
- Reputational Damage
- Consequences on Portugal (we don’t want new bailouts, I don’t think we will have a new Bankia treatment.