Republished from Dr. Ed Yardeni’s blog: “Dr. Ed’s Blog”
Has there ever been a margin call on the debt of the government of a major industrial economy before? I don’t think so, but there was one yesterday on the Italian government’s debt. On Wednesday, clearing house LCH.Clearnet SA raised initial margin requirements on Italian bonds across a range of maturities. The margin on bonds due between 7-10 years was raised by 5 percentage points to 11.65%, for bonds due between …