European default risk escalates

 EmailPrint This Post Print This Post

Sovereign debt worries in Europe continue to trouble financial markets. The charts below, courtesy of Bespoke Investment Group, show the default risk as measured by 5-year CDS (credit default swap) prices for Spain, Ireland, France, and Germany.

Bespoke said: “Ireland currently has the biggest problems and the highest default risk. After pulling back some last week, the Ireland CDS has moved back to its previous highs. Spain, with its size, is worrying people the most, and the chart of its default risk doesn’t look pretty. For much of 2009, Spain CDS traded at prices just above CDS for France and Germany, but default risk has recently spiked to levels that haven’t been previously seen for that country. For the time being, default risk for France and Germany hasn’t hit new highs. France is getting close, however, while Germany still has a ways to go.”

Source: Bespoke Investment Group, November 29, 2010.

Did you enjoy this post? If so, click here to subscribe to updates to Investment Postcards from Cape Town by e-mail.

OverSeas Radio Network

Leave a Reply

  

  

  

You can use these HTML tags

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Top 100 Financial Blogs

Recent Posts

Charts & Indexes

Gold Price (US$)

Don Coxe’s Weekly Webcast

Podcast – Dow Jones


One minute - every hour - weekdays
(requires Windows Media Player)
newsflashr network
National Debt Clock

Calendar of Posts

November 2010
MTWTFSS
« Oct Dec »
1234567
891011121314
15161718192021
22232425262728
2930 

Feed the Bull