[1]As the selling stampede takes the Spanish bond complex by storm, here is another bond to hedge the shorts with, this time not a regional one [4], but an outright Spanish MTN. Note that the presence of the negative pledge at the sovereign level means that first Finland, and soon everyone else will demand a security interest the second the ESM loan is activated.
[5]
From THE KINGDOM OF SPAIN, €8,000,000,000 Euro Medium Term Note Programme [6]
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Links:
[1] http://www.zerohedge.com/users/tyler-durden
[2] http://www.zerohedge.com/taxonomy_vtn/term/10414
[3] http://www.zerohedge.com/taxonomy_vtn/term/9803
[4] http://www.zerohedge.com/news/english-law-negative-pledge-how-hedge-spanish-bond-short
[5] http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2012/06/Spain%20MTN%201.jpg
[6] http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2012/06/Spain%20MTN%20Programme.pdf