Spain has not been a key beneficiary of the results associated with the European banking stress tests and has, instead, seen the CDS on its government debt remained price high.
As you can see, the tightening that could be found in Spain after the stress tests is starting to ebb away.
From Morgan Stanley:
Notably, BBVA and Santander remain strong, but other Spanish banks are showing the strain of uncertainty in the domestic economy. Spain’s Q2 unemployment was 20.1%.
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