Deutsche Bank Reveals €2 Billion Short Position In Spanish And Portuguese Sovereign Debt

The Business Insider ^ | 6-10-2010 | Gregory White

[blam]

Deutsche Bank Reveals €2 Billion Short Position In Spanish And Portuguese Sovereign Debt

Gregory White
Jun. 10, 2010, 9:30 AM

Deustche Bank has revealed a short position in European sovereign debt worth €2 billion ($2.4 billion), focused on Spanish and Portuguese sovereign debt, according to The Telegraph.

The Spanish short is worth £900 million ($1.315 billion) while the Portuguese short is worth £660 million ($963 million).

The news only adds to worries over the state of the Spanish economy. Today, the Bank of Spain had a successful debt auction in which they sold 3 year bonds worth €3.9 billion ($4.7 billion), though prices came in on the high end of the government's range.

The auction showed signs of stress, only adding to what must be growing worries over the country's imminent massive debt rollover period in July.

The country's banking industry continues to consolidate with great pace, with rumors suggesting Caja Madrid is now interested in taking CajaSur off the hands of the Spanish government.

[snip]

[Red Badger]

Seems like a safe bet to me..............

[Army Air Corps]

Countdown to another PIIGS country going belly-up.

[TexasCajun]

Socialism Fail

[Mobties]

That’s only half the story. For Deutsche Bank to be short, some jerk is long €2 billion in Spanish or Portuguese debt instruments. I hope it isn’t my pension fund.

I hope it’s the pension fund of the Spanish and Portuguese politicians and labor unions whose policies induced the indebtedness in the first place.

[Lurker]

though prices came in on the high end of the government's range

Ya think?