Julian Chillingworth, chief investment officer at Rathbones
"The positive is that the eurozone and the Spanish government have agreed a facility by which banks can draw down funds. This will be particularly helpful to the Spanish real estate market as well as easing pressure on the bond market."
"What we are not going to see is Spain returning to growth any time soon. Unemployment and the austerity package the government has already put in place will ensure that life will be hard for some time."
"Spain has received a better deal than Greece but the Spanish government has shown more willingness to rein in its expenditure.""Today we have seen something of a relief rally. My suspicion, however, is that the markets will put all of this behind them in a matter of days and all eyes will return to other countries."
"The real concern in the short- to medium-term is Italy. Mario Monti is only in charge in this interim period and there will be elections shortly and any change of direction will increase uncertainty. The problem for the EU is that it cannot contemplate the euro without Italy."
David Simner, portfolio manager of Fidelity Euro Bond
"Although we remain cautious on the fixed income outlook for Spain, this weekend’s announcement is positive for several reasons. It will enforce the long-awaited external scrutiny of Spain’s banks. This will remove a significant element of economic uncertainty once a final clean-up cost is arrived at."The funding will be provided at below-market rates and, we assume, long maturities, which takes the heat off Spain's regular sovereign issuance."
"It is a signal of intent by eurozone powers that they want to stop the rot by pre-emptively deploying firewall resources. This raises hopes for progress at the end-June European Council meeting."
"On the other hand, Spain’s banks are only one layer of the economy’s shaky foundations. It still has the highest unemployment and the third-widest fiscal deficit in Europe in the context of a painful recession. The current government has a poor track record of crisis management and data quality has been poor."
Simon Denham, chief executive of Capital Spreads
"If history is anything to go by we have seen that bailing out banks doesn’t work in the short-term as we only have to see the struggling share prices of our own nationalised banks."The severity of the problems that these banks have been getting themselves into has been vastly underestimated by many and once again we see that the answer from politicians is to throw good money after bad."
"As another €100bn is piled onto Spain’s humongous debt mountain their ability to ever repay it all will only become a reality if their economy takes a turn for the better."
"The likelihood of this is very slim indeed considering the rate of unemployment and the massive housing bubble that is still bursting. It will be interesting to see whether this jump in equities can be sustained because when the dust settles the focus will be back on Greece."
Andrey Dirgin, head of research at Forex Club
"Spain is once again the centre of attention having announced that it will receive €100bn in order to help to shore up its struggling banking sector. This makes it the fourth eurozone nation to request aid."
"Taking into account the fact that investors are asking for higher and higher yields for Spanish bonds, it is clear that the government could not lend the amount of funds necessary to save its banks on international credit markets."
"The euro soared to 1.2640 (+1.2 per cent) over the weekend but some are sceptical that the single currency can sustain those gains. Today, the IMF is expected to publish the results of the Spanish banking sector review and the government is awaiting the results of the financial audits on 21 June."
"After months of denial from officials, the most important thing now is to understand the size of the Spanish problem. If the danger can be averted by the injection of €100bn, it would be a positive signal for the market and we would then expect the single currency to keep holding at the current level or even rally further."