CONTAGION

FROM FT:

"Markets have been pricing in greater concerns over Portugal’s debt burden as worries over Greece’s bail-out spill into other periphery Eurozone nations.

On Tuesday Portuguese 10-year bond yields rose to 4.65 per cent, up 5 basis points on the day, heading once again towards record highs of 4.77 per cent that it hit in early February.

In recent days it has also become more expensive to buy credit default protection against short-dated Portuguese government bonds rather than long-dated ones. Greece is the only other country in the Eurozone where this is also the case.This anomaly in credit markets – known as a curve inversion – is an indication of market expectations of financial stress and highlights rising concern in markets about contagion from Greece"

Do you know that Spain is the biggest holder of Portuguese debt ?

Club MED is tasting the contagion effects of 97/98 Asian crisis

WIZ