Periphery suffers as Russian tensions grow but issuers comfortable

The eurozone periphery suffered one of its poorest weeks of the year, as a sanctions battle between Russia and the west pushed investor cash into core European debt. But with Spain driving down its funding costs at auction and periphery sovereigns well-funded — plus record low Bund yields leaving investors seeking yield with few options but to return to the periphery in the future — there were few concerns that the issuers will struggle to meet their funding targets this year.