Considering the present architecture of the Eurozone – there is according to Erwan Mahé no obvious way to solve the Italian Euro crisis…
From: Erwan Mahé
I sent this little collage on 25 May, via IB Bloomberg chat, as the BTP began to decline, since it seemed to sum up the best attitude to take towards the near hysteria afflicting the Italian debt market at the time.
From a high of 132.88 on Monday 25 May, it plunged to as low as 120.10 the next day, reflecting a full one per cent rate shift on the eurozone on the 10-year maturity! Lucky for us, the trade we flagged on Tuesday 29 May on the 2-year Italian maturity, with a bloc of 14,000 2-year futures (i.e. 25% of usual BTP daily volume!), fell 1 point below market price in the wake of rumours about huge losses at some carry funds,Read More »