Spain at 7% Stresses Inadequacies of Rescue Options: Euro Credit
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Money managers with more than $800 billion are betting European policy makers can only offer Spain a temporary respite from record borrowing costs.
Yields on Spain’s two-, five-, 10- and 30-year government securities climbed to euro-era highs this week amid speculation the nation will need a bailout to backstop its regions and banks. While the Organization for Economic Cooperation and Development called for the European Central Bank to buy Spanish debt, investors including AllianceBernstein Ltd. and M&G Group Plc said policy makers are hamstrung in how to rescue an economy twice the combined size of Greece, Ireland and Portugal.