Bloomberg says it has obtained a confidential document showing that assumed stress test results are only being applied to trading books, not bonds that banks plan to hold until maturity. The assumption is that all bonds will be paid in full, even if mark-to-market accounting forces banks to take writedowns. “No default assumption was considered,” the document, entitled ‘EU Stress Test Exercise: Key Messages on Methodological Issues’ said. The reports shows that the tests assume losses of 23.1% on Greek debt, 14% on Portuguese bonds, 12.3% on Spanish debt and 4.7% on German state debt. UK bonds are subject to a 10% loss and France 5.9%. The euro is nosediving as a result of the report.