Are You Betting On A European Financial Collapse?

Angela Merkel

[credit provider=”AP”]

The crisis in the eurozone has exploded yet again, and now concerns are increasing over European bank exposures to fringe sovereign debt.Earlier, we pointed out 12 financial institutions that would be hit hard if the PIIGS restructured their debt. The names include international heavy hitters like Credit Suisse, Deutsche Bank, and Santander.

But maybe you think Europe is going to get out of this crisis without forcing significant haircuts on bondholders. If that’s the case, then you may want be long those stocks, as the market might be overpricing the risk of sovereign default or restructuring.

There are a couple ETFs you can buy to go long their shares, or you can just play the individual stocks.