The ECB has bought EUR 40.5 bln in EU government bonds (primarily in PIIGS bonds) .
Recent price action suggest the program has failed to cool market jitters, but it has had the effect of moving sovereign debt off of bank balance sheets and on to the ECB’s balance sheet. The socialization of risk, once again…
Spreads between Spain and German are now at 207 bp, the widest on record since the birth of the euro. The wider spreads go, the lower EUR/USD tends to go…
