From A Pact Made In Heaven To One Contrived In Hell

This weekend’s Italian elections are provoking a good deal of commentary and fueling mounting concern about possible consequences for the European debt crisis, and in particular for the outlook for Italian sovereign spreads in the short term. We think much of this...

Spain – It’s The Real Economy Stupid!

As foreseen in recent updates on Spain, the market for SGBs remains calm and spreads across the maturity horizon are tightening. Last week Spanish ten year yields fell below the 5% mark for the first time since March last year, while two year yields are now hugging...

Take Care To Read The Writing On The Wall in Italy

Events of the last week have once more brought Italy back into the headlines. The decision of former Prime Minister Silvio Berlusconi to deny support to the technocratic government of Mario Monti sent alarm bells ringing in markets across the globe. But the excitement...