CDS On Reinsurers Spikes On Concerns Over Quake And Tsunami Exposure

We told you earlier about the equity hit to reinsurance firms from the Japanese tsunami and earthquake, but they are also getting slammed in credit markets.

CDS on the debt of major reinsurance firms is spiking, as spreads widen due to concerns these firms have significant exposures to regions hit by the event. Obviously, it will be some time before we know the real impact to these firms’ holdings, but the market is already speculating it will be quite bad.

Check out graphic photos of the quake and tsunami aftermath >

From CMA Datavision:

Chart

Photo: CMA Datavision

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