Germany's 'desperate' short ban triggers capital flight to Switz. Far from stabilising markets, BaFin's move set off a nasty sell-off in credit markets.
Markit's iTraxx Crossover index – measuring risk in mid-level corporate bonds – jumped 57 basis points to 586. Markit said BaFin had caused liquidity to dry up in "febrile conditions". The Libor-OIS spread watched for signs of strain in interbank lending widened further. If the purpose of BaFin's action was to drive wolfpack "speculators" off Greece's back, it failed. Yields on 10-year Greek bonds rose 37 basis points to 7.918pc. Market chaos warning after German ban on shorting. "As A German Citizen, I Wish To Apologize For The Stupidity Of M.