Seeking Alpha
Credit Market Charts Update: CDS On Greece Go Ballistic Again
includes: BBVA, DB, ERO, FXE, SCGLY.PK
Below is our customary update of credit market charts, including the usual suspects: CDS on various sovereign debtors and banks, bond yields, euro basis swaps and a few other charts. Charts and price scales are color coded (readers should keep the different price scales in mind when assessing 4-in-1 charts). Where necessary we have provided a legend for the color coding below the charts. Prices are as of Friday’s close.
CDS spreads on Spain and Italy remain near their recent highs, while those on Greek debt have shot up to a new post PSI deal high of 11,728 basis points – an increase of about 3,000 basis points in just one week – as traders warily eye the upcoming election. We would point out to this that regardless of the election outcome, Greece is bankrupt anyway. In the rest of euro area and the CEE nations, CDS spreads have behaved better and begun to correct.
Something seems to be cooking in Morocco, but we’re not sure what at this point. If any information is forthcoming, we’ll let our readers know. Fact is, CDS on Morocco’s sovereign debt have lately moved a good bit higher.
Our European bank CDS index is also ticking up again after initially declining on the Spanish bank bailout news.
