The deterioration in cross currency swaps has to do with the deepening of the sovereign crisis. Now we are entering into a new phase, where it is really moving to the core, so I think European banks ... will struggle more to get money," Alessandro Giansanti, strategist at ING.
Contagion has recently spread to triple-A rated debt such as that of Austria and the Netherlands. This week market pressure turned on Germany after one of its worst bond sales since the launch of the euro.
If you liked this article, please give it a quick review on ycombinator or StumbleUpon. Thanks