Taiwan: Financial Services « 金融 « 研究報告 « Downloads
| Attribute | Value |
|---|---|
| Version | Feb 08-2010-Goldman Sachs |
| Date posted | February 23, 2010 |
| Downloaded | 49 times |
| Categories | 金融, 研究報告 |
| Tags |
Description
Exposure in south Europe mostly in Spain government bond
Taiwan financials’ share prices pulled back 10% last week (worst
performing among regional financials), on concerns of their credit
exposure to southern Europe. Our findings: (1) Taiwan financials under our
coverage appear to have no credit exposure in Portugal and very limited
exposure in Greece; (2) For Spain, although Fubon/Cathay have NT$10.9bn
/NT$2.2bn credit exposure according to the companies’ disclosures, most
of the exposure is in government bonds, which we believe the default risk
should be contained. According to our Global ECS Research team, while
Spanish bonds and sovereign debt may trade in sympathy with Greek
assets, the fundamentals differ significantly across the region and the
degree of solvency issues facing Greece is not shared by other Euro-zone
sovereigns. Given the limited earning erosion risk, we suggest investor
add on dips for better quality names, such as Cathay.
