MS notes the bonds of the European periphery are government bonds - safe, liquid, negative...

|By:, SA News Editor

MS notes the bonds of the European periphery are government bonds - safe, liquid, negative correlation with risky assets - in name only. Thus, it is not speculative shorts, but traditional holders of government paper exiting the market that is to blame for lower prices. PIIGS debt is an asset class in search in search of a new investor base.