Is Portugal about ready to implode? That's what one hedge fund manager believes. For now, interest rate action suggests otherwise. We will explore the case for implosion but first consider this chart of 10-year sovereign bonds. Portugal 10-Year Sovereign Debt Yield One certainly could have made a fortune plowing into 10-year Portuguese bonds. Does that mean Portugal out of the woods? I don't think so, and neither does Tortus Capital hedge fund manager David Salanic. The New York times describes the setup in A Lonely Bet Against Portugal’s Debt, but I am more interested in Tortus Capital's thesis. Salanic maintains the status quo is not sustainable. Here is his overall thesis. Portugal Debt Implosion Thesis