“The one roaring trade for the start of 2014 has been euro-zone peripheral debt, with yields tumbling in the crisis-hit, debt-laded nations within the euro.  The trouble is, it is going end in catastrophe.  Right now, the PIGS — Portugal, Ireland, Greece and Spain — are flying. But that can’t last.  Investors are taking a big bet that the euro-zone crisis is gradually being fixed, that yields will start to converge again across Europe, and the banking system will stabilize. They are wrong on each count. In reality, the fault lines in the system are growing worse, it is just that right now they are under the surface.”

http://www.marketwatch.com/story/bond-investors-will-find-out-that-pigs-cant-fly-2014-01-15

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