On September 8, the ECB made the biggest rate hike in history, with an upward movement of 75 basis points, and the market is already beginning to speculate on the possibility that it will act in the same way in October. The tightening of monetary policy has already brought the Euribor above 2% for the first time in more than a decade, and it is good news for banks on paper: higher rates allow them higher margins after years of interest rates. negatives.
In fact, the banks have been among the main protagonists of the IBEX 35, becoming engines for the index to leave its downward streak behind. A rally that contrasts with the bearish bets that some funds have been making in the selective banks.
Thus, just two days before the ECB meeting, on September 6, Citadel Advisors Europe Limited emerged with a short position of 0.510% of the capital in Banco Sabadell, according to the records of the National Securities Market Commission (CNMV).
This position has a market value of more than 21.5 million euros, taking into account the current market capitalization of the bank (4,250 million). In addition, since the day that Citadel emerged from its position, Sabadell shares have accumulated a revaluation of more than 10%. Sabadell is up 30% so far in 2022.
Also quite recent is the short position that Bridgewater Associates, LP has emerged in BBVA. Since August 31, it has been notified of a position of 0.5% of the capital, according to the CNMV. This position, valued at around 160 million euros, has also risen in value by almost 10% in the last two weeks.
And that BBVA is having a complicated transit through the parquet this year, practically standing in tables so far in 2022.
The bank with the worst performance this year on the Ibex 35 is Banco Santander, with a cumulative drop of 9%. Since July 21, the fund Bridgewater Associates, LP (the same as in BBVA), has declared a short position of 0.59% of the capital, valued at more than 260 million euros at market prices. The price of the entity’s securities has gone from 2.45 to 2.63 euros in the period of time since then.
The longest short position declared in an Ibex bank corresponds to 0.51% of the capital that AQR Capital Management, LLC has declared since June 9 of this year in Bankinter. In this case, it could take advantage of it, since the current price is below the 5.98 euros that it marked three months ago.
Among the Ibex 35 banks, only Caixabank is off the radar of bearish investors, something that is not surprising considering that it is the best value of the Ibex 35 so far this year. The entity accumulates a revaluation that exceeds 50% in these slightly more than eight months of 2022. Only in the last 20 sessions, the rise is 13.5%.