Asia Unhedged | Want something to worry about? Italy is getting riskier
Source: Bloomberg
Source: Bloomberg
Asia UnhedgedReal-time intel on what moves markets

Want something to worry about? Italy is getting riskier

Populist parties are gaining steam as the banks can’t find a solution for bad-loans

April 4, 2017 8:04 PM (UTC+8)

The yield differential between 10-year German government bonds and Italian government bonds is now well past 2%. Italy’s economy is dead in the water, still 8% smaller than it was in 2008. Italy’s banks still can’t deal with their bad-loan burden. And Italy’s populist alternative parties together appear to have enough votes to form a government. That would make Brexit look like a picnic.

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