CDS Insurance Costs Hit Record High

From MarketWatch:

Portugal Debt Insurance Cost Hits Record

 The spread on five-year Portuguese CDS widened to 1,310 basis points from 1,279 basis points on Tuesday, according to data provider Markit. That means it would now cost $1.31 million annually to insure $10 million of Portuguese debt against default for five years. "Right now it looks as if Portugal could be the country with the biggest multiple-equilibria risk -- meaning the biggest risk of being dragged towards default, 

My view:

The endgame is rapidly approaching in Europe.

In my opinion, the market has not come close to pricing in the fallout.

Be ready.