Rumor Meet News: S&P To Put All 17 Euro Nations On Downgrade Watch
Just as we noted earlier from the leak to the FT, Bloomberg is now reporting further that
S&P Said to Place All 17 Euro Nations on Rating Downgrade Watch
The AAA aspect is probably the most critical still and the differentiation between Austria and France and the rest of the AAA European sovereigns has been plain to see for a while but the major direct impact of this move will be on EFSF bonds (and the entire support structure) which managed to rally back from just over 200bps to 148bps close today.
EFSF spread to Bunds remains 35bps higher than immediately post the EU Summit.