, Columnist
Renegade Referendum Spooks Bondholders
In Catalonia, investors have little to fear except fear itself.
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The Spanish region of Catalonia plans to hold a referendum on becoming independent later this year, a plebiscite that the central government says is illegal. Bondholders are starting to take fright at the prospect of a constitutional battle. But they're probably jumping at shadows.
Catalonia owes bondholders about 5.6 billion euros, spread across 26 bond issues. The yield on the region's benchmark issue, 1 billion euros ($1.2 billion) of bonds that mature in 2020, has risen more than half a percentage point in recent weeks.