Registered: Apr 2012
06-19-12 06:51 PM
Thanks lionline, I PMed you.
Quote from just21:
You have access to german and italian bond futures from eurex on ib.
Thanks - I already looked into these though. There's BTP, which I think delivers a basket of Italian bonds, and there's also OAT which is the equivalent for French bonds.
I'm not particularly interested in these futures, because I couldn't find an exact equivalent for German bonds, and I don't particularly want to construct a synthetic basket of German bonds, mostly because of capital constraints.
Also, the Italian bonds aren't as cheap as Spanish bonds, so I'm thinking that the opportunity there isn't as good. The Spanish/German 10 year yield is 7/1.5, I mean jeez. In comparison, the Italian/French yield is 'only' 5.9/2.7, or about half as much. So I do want to buy Spanish bonds directly and not proxy them through Italian bonds.