Spain Italy PIIGS Illiquidity Collateral Europe Negative Interest Rates Periphery Core Euro

The divergence in European credit has perhaps reached a watershed. In non-euro denominations of European debt, such as Switzerland and Denmark, government bond yields have surged further downward to record negative yields. The Swiss 2-year note, for instance, is now yielding below –0.43%. For the sake of comparison, one year ago, during what was then believed to be no small [...]