While political instability is nothing new for Italy, last week’s developments have triggered major market moves. The 10-year Italian government spread to Bunds jumped to as high as 288bps last week, which is an impressive move if you consider that investors were only asking for a risk premium of 122bps at the beginning of the month. Despite a rebound in markets towards the end of the week, the spread to Bunds remains elevated. In an environment where government bonds are experiencing such significant moves, I am particularly interested to see how Italian high yield credits are coping. High yield fund manager James Tomlins joined me this morning to discuss these highly timely topics – tune in to hear James’ thoughts on prospects for Italian businesses with heightened credit risk.