The spread on Spanish government bonds over German bunds reached an all-time high today on continued economic concerns for the Mediterranean country.
Fears over Spain escalated yesterday as investors sold off government bonds on warnings of funding problems for the country's companies and banks.
Thames River's Peter Geikie-Cobb is looking to rebuild the US dollar exposure of his Global Bond fund to 75% over the coming month, having trimmed it to 50% in May.
The German Government plans to outlaw the naked short-selling of all stocks listed on its exchanges, enlarging last week's contentious ban on shorting key financial stocks.
At the beginning of this year, who would have bet on the potential disintegration of the euro?
Germany's decision to ban naked short-selling could be replicated in other markets as regulators panic, Gartmore's Ben Wallace believes.
M&G's Richard Woolnough discusses the market turbulence in Europe and why the developments could force investors to look elsewhere.
Allianz Global Investors believes the German ban on naked short selling is inadequate.