By Bondsquawk:
European Soverign CDS continues to trade worse the last couple of days with all the gains from the Monday announcement of the Greece rescue package evaporated. At its recent peak, Greece 5yr CDS was trading around 440 bps which subsequently recovered to about 375 bps after details of the European aid was released. It is currently trading around 430 bps. The higher the premium, the higher the market's perception of a default.
Separately, there appears to be some contagion with Portugal and Spain CDS both spiking on fears that these countries are next in line after Greece. Here is where they are most recently quoted:
The unfortunate thing about credit problems are that they never seem to go away"¦.unless you fix the underlying issues (balance sheet, spending, revenue) every other solution is akin to using band aid's to heal a severed limb.
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Sovereigns widening? Meaningless….. Goog’s gonna blow the doors off all the incompetent hopelessly conlicted estimates as sampled by bloomberg. That’s all anyone needs to know. Rally on Garth.
[Reply]
TPC Reply:April 15th, 2010 at 1:31 PM
Bullish commentary from Google, GE and Bank of America is almost a no-brainer over the next 24 hours. What I am having difficulty grasping is why this is such a big surprise to everyone? We’re clearly front-running the news again today. A spike into the close today would not shock me one bit.
I want to meet these people who are buying the actual news though. Have they been living under a rock for the last month?
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By Bondsquawk:
European Soverign CDS continues to trade worse the last couple of days with all the gains from the Monday announcement of the Greece rescue package evaporated. At its recent peak, Greece 5yr CDS was trading around 440 bps which subsequently recovered to about 375 bps after details of the European aid was released. It is currently trading around 430 bps. The higher the premium, the higher the market's perception of a default.
Separately, there appears to be some contagion with Portugal and Spain CDS both spiking on fears that these countries are next in line after Greece. Here is where they are most recently quoted:
The unfortunate thing about credit problems are that they never seem to go away"¦.unless you fix the underlying issues (balance sheet, spending, revenue) every other solution is akin to using band aid's to heal a severed limb.
The content on this site is provided as general information only and should not be taken as investment advice. All site content shall not be construed as a recommendation to buy or sell any security or financial product, or to participate in any particular trading or investment strategy. The ideas expressed on this site are solely the opinions of the author(s) and do not necessarily represent the opinions of firms affiliated with the author(s). The author(s) may or may not have a position in any security referenced herein. Any action that you take as a result of information or analysis on this site is ultimately your responsibility. Consult your investment adviser before making any investment decisions.
Post Footer automatically generated by Add Post Footer Plugin for wordpress.
Sovereigns widening? Meaningless….. Goog’s gonna blow the doors off all the incompetent hopelessly conlicted estimates as sampled by bloomberg. That’s all anyone needs to know. Rally on Garth.
[Reply]
TPC Reply:April 15th, 2010 at 1:31 PM
Bullish commentary from Google, GE and Bank of America is almost a no-brainer over the next 24 hours. What I am having difficulty grasping is why this is such a big surprise to everyone? We’re clearly front-running the news again today. A spike into the close today would not shock me one bit.
I want to meet these people who are buying the actual news though. Have they been living under a rock for the last month?
[Reply]
Add your comment below, or trackback from your own site. You can also subscribe to these comments via RSS.
Be nice. Keep it clean. Stay on topic. Comments/names with multiple links will get caught in the spam filter!
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You can use these tags:<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>
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