Italy should worry about spread

(ANSA) - Milan, September 17 - 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.