CDS BETS ON ITALY DEFAULT

''Yields on Italian government bonds, it seems, aren't the only things rising in the country this summer as investors begin to ask if Italy will be the next domino to fall in Europe. Currently, more bets on credit defaults -- so-called credit default swaps (CDS) -- are being taken out on Italy than any other country.

With a gross CDS volume of almost $306 billion (€212.69 billion), the country is currently in the lead, ahead of Brazil ($179 billion) and Spain ($176 billion). Indeed, the desire among investors to bet on a default in Italy and Spain appears to be growing. Since mid-June, the bets against Italy have risen by $23 billion and those against Spain by $18 billion.'' DER SPIEGEL

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