Is Talk Of Euro Abandonment Good For The Soul?
By Market Blog:
By David Berman
If the first step to solving a problem is admitting that you have one, then investors should accept with delight some of the risk factors in the UniCredit SpA rights prospectus. The share price of the Italian bank fell to a 19-year low on Thursday, slumping more than 17 per cent after it priced its rights offer at a steep discount to its share price, reflecting dour market conditions and a deeper sovereign-debt crisis. However, comments in the prospectus about the future of the euro – picked up by Bloomberg News and FT Alphaville – may have caused some of the greatest anxiety. First, there is the risk that some countries could leave the euro zone: There is the “growing risk that other euro zone countries could be subject to an increase in borrowing costs and could face an economic crisis similar to that of Greece, Italy,Complete Story »