Wednesday, May 18, 2011

Is Spain the new Greece? Nah, they can't hide a debt-swap with GS!

So interesting stories making rounds this morning...

09:51:27  XXXXXX XXXXXXX: Basically saying that after the upcoming local elections, Spain will reveal much larger than expected deficits.

FT May 16th - ‘Hidden’ debt raises Spain bond fears

The report notes that the risk premium for the regions, as measured by the interest rate spread over benchmark German Bunds, is double that of the Spanish state, suggesting the markets have little faith in their ability to pay and will be reluctant to refinance them in the months ahead.

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