"All eyes were on Spanish bond yields AGAIN on Wednesday. Especially as news emerged that the country was freezing, due to market volatility, the start of its €13.5bn issue programme set to sell state-guaranteed power revenue bonds.
But as BNP Paribas points out in an earlier note in the day, investors who are paying close attention here should probably be equally mindful of LATAM spreads.
Mexico and Brazil specifically. These two countries, they note, are amongst the most exposed to the Spanish banking sector and sovereign.
Although, as they explained, it’s Mexico which has by far the biggest exposure..."
at http://ftalphaville.ft.com/blog/2010/11/24/415286/the-latam-contagion-effect/
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