"Italy will not be another Greece", said former Italian Prime Minister Matteo Renzi in July 2015.
Nearly four years later the country's sovereign debt markets show they may be closer than ever before. Italy can borrow for five years at a rate of 1.85% and Greece can now borrow at a slightly lower rate of 1.73%. So, what is behind this, and why are the debt markets pricing equivalent credit risks for the two countries? Back in 2015, Italy could borrow for five years at 1.34% while Greek five-year debt reached around a 20% yield at one stage. Greece was effectively still shut out of the debt markets. Falling angels or Italian debt: Which BBB markets to avoid? Coming back to t...
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