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.

Comments

  1. Yes sir PW...be ready indeed.

    Thank you PW

    Bill

    ReplyDelete

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