Sovereign CDS update

By Peter Boockvar - February 3rd, 2010, 1:15PM

Sovereign CDS are closing at their wides of the day with Portugal leading the way rising by 28 bps to a record 195. Spain is following, up by 20 bps at 150. Italy is wider by 10 bps to 130, Greece is up by 7 bps to 390 and Dubai is higher by 15 bps at 510. Also moving up to the highest since June ’09 is US CDS at 46 bps, up by 3 bps on the day. The UK and Germany are also at the widest since June ’09 with France at the widest since May ’09. Japanese CDS, the highest levered developed economy in the world, is down 3 bps on the day to 79, the lowest since mid Jan but will likely react tonight to the action in their peers.

PERMALINK
Category: MacroNotes.

Comments

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data, ability to repeat discredited memes, and lack of respect for scientific knowledge. Also, be sure to create straw men and argue against things I have neither said nor even implied. Any irrelevancies you can mention will also be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

3 Responses to “Sovereign CDS update”

hgordon Says:
February 3rd, 2010 at 3:18 pm
Peter -

Would you mind educating me a bit on sovereign CDS’s ? I used to understand interest rate and currency futures, but it’s been multiple decades since I had any involvement with them. Are these exchange traded ? If not, where are they quoted ? Further, who writes them and how would a buyer collect if a triggering event occurred. Thanks !

HG
insaneclownposse Says:
February 3rd, 2010 at 7:54 pm
hgordon,

that’s why the U.S. sovereign CDS are ridiculous, but they do actually trade. They can’t be sold in size though so the world hasn’t changed that much since back in the day.
Economic news headlines | Money Supply | FT.com Says:
February 4th, 2010 at 8:26 am
[...] CDS spreads widen – Big Picture [...]