Spain could be in more trouble, should a credit rating decide to find Spanish debt less lucrative than it currently is. Earlier in the month, the European Central Bank adjusted its rules on the issuance of ‘haircuts’, or amnesties, that allow countries to offer up collateral in exchange for certain kinds funding from the bank. If the credit rating of a country dips below an A rating, the penalties become more severe. In the case of Spain, one downgrade could result in 8 billion euros less in funding, for the 100 billion in government bonds given as collateral. Avoiding this in Spain is going to be hard, where the ... (full story)