Whatever You Do, Don't Look At The UniCredit Long Bond

...or else you will figure out not only that there is such a thing as sovereign crisis spillover into financials, but why UniCredit was once again the most active name on Sigma X yesterday, and why earlier today it is rumored that the bank is scrambling for emergency ECB assistance. But such is life when your equity is €14.5 billion and your total holdings of Italian bonds ar... €40 billion! If we were betting people, we would probably out a dollar down that UCG is the next Dexia.

UniCredit 4.75% of 2027 Price:

and Yield:

 

Oh, and guess who again is on top of Sigma X...