Italy's default risk is not
high but the volatility of its spread, the difference between
Italian and German lending rates viewed as a strong indication
of investor faith in the Italian economy, is a serious concern
said Ryan Blute, managing director of Pacific Investment Company
Management (Pimco), an American global investment management
firm, on Wednesday.
Blute added that upcoming bank stress tests, a simulation
designed to determine the ability of a given financial
instrument or institution to weather an economic crisis, may be
more credible than in the past.
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