Nah, it's the actual yield spread between the where the current existing EFSF issues trade and the comparable maturity bunds.
stopped myself from long Euro trade at 1.36 and reversed, very tight stop: 20 pip on this one, target: 50-100 pip. I gave back 50% of profits, but that was a conscious decision trying to pyramid my profits 2-3x.
It's all over the news here. Long term interest swaps they forgot to hedge which blew up in their face so they say.... "Nobody could have known the Eurocrisis would escalate again this summer" is the CEO response...
Yep, thx... I think this might be the usual case of the press getting ahead of themselves. I don't think this is the case of them being naked short. I think they fell victim to the same thing that killed DEPFA (Hypo Re) before them. So, as always, death by funding or, rather, lack thereof.