Forget the spread between German and Spanish debt as a stress indicator, writes Stephen Bernard,...

|By:, SA News Editor

Forget the spread between German and Spanish debt as a stress indicator, writes Stephen Bernard, keep your eye on the German-Swiss spread. Ideas the EU debt issues will eventually crater the German balance sheet are gaining more traction and is being reflected in Swiss 2-year yields 43 basis points lower than German vs. just 9 bps a month ago. (nice companion piece here)