From BlackRock: We have updated our BlackRock Sovereign Risk Index (BSRI) rankings, and conflict over Catalonia’s independence bid is weighting negatively on some measures of the riskiness of Spanish sovereign debt. Isabelle Mateos y Lago explains.
From Zacks: Spanish stocks rallied as Catalan leader Puigdemont refrained from declaring independence from Spain. Worries of a political crisis in Europe abated as Catalan president suspended the secession process to enable talks with Madrid.
From JR Crooks: Spain continues to suffer under its crushing debt load. Meanwhile, one of its autonomous provinces wants to declare its fiscal independence as soon as this Sunday, Oct. 1.
From Tyler Durden: Spain found itself on the verge of a full-blown sovereign crisis on Saturday, after the “rebel region” of Catalonia rejected giving more control to the central government in defiance of authorities in Madrid who are trying to suppress an independence referendum on Oct. 1.
From Dana Lyons: A composite of the so-called “PIIGS” markets in Europe is testing 7-year highs.
All over the planet, large banks are massively overexposed to derivatives contracts. Interest rate derivatives account for the biggest chunk of these derivatives contracts.
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