Investors wondering where the opportunities are for profit in the embattled eurozone could do worse than take a closer look at the credit default swaps of one of the countries at the very heart of the turmoil: Italy

Its five- to ten-year CDS offer potential. Assuming minimum contract sizes of €5m, Italy's 10-year CDS contracts were selling for €1,27m upfront yesterday, the equivalent of 516.4 basis points. The five-year insurance could be bought for €887,338 upfront, or 558bps. Selling some of the longer-term CDS and buying some of the shorter-term contract, would yield an immediate profit, and holding on would also give a hedge on the future direction of Italy's economy.