Sunday, March 27, 2011

PIIGS Credit Default Swaps

The main aspect of the European Sovereign Debt Crisis that is quite noticeable is that the still market perceives Greece, Ireland and Portugal insolvent as CDS keep rising, however one main fundamental shift is occurring. CDS of major countries like Spain and Italy are falling and completely diverging from the rest, indicating that the market now has a view that European leaders have done enough with their backstop mechanism.

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