EU Trying To Fudge The Subordination Problem
From forexlive.com
The loan to Spain could come from the EFSF to to avoid the ESM’s preferred creditor status, an EU official tells Reuters. Bailout could be transferred to ESM but loans already extended would not become senior to other debt, the official says. No uptick in Spanish bonds on the headlines. They are 20 bp firmer in yield on the day, at 6.45%.
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