Deutsche Bank: Oh Yeah We're Shorting Spain

 (From London )

The full extent of Deutsche Bank's short positions on the Spanish economy have been revealed, and the target is not just the country's public debt.

Deutsche Bank is shorting five different Spanish companies in addition to its €1.1 billion ($1.35 billion) sovereign debt short of Spain, according to Cotizalia. Those companies are:

    * BBVA - €370 million - or 1.14% of the firm
    * Ferrovial - €46 million - or 1.1% of the firm
    * Banco Popular - 0.69% of the firm
    * Grifols - 1.7% of the firm
    * Gamesa - 0.7% of the firm

The positions were announced by Deutsche Bank's London office, which is not subject to the same trading regulations as the German headquarters.

These short positions could explain some of the market stress BBVA has been under, which has limited their access to the commercial paper market. Other banks and corporations in Spain are also experiencing funding problems in the country's credit markets.

Santander, thus far, remains above the frey. But along with BBVA there are serious concerns about the correlation between Spain's two major bank CDS, and the CDS on sovereign debt.