On Thursday we noted that a number of interesting things were happening in the CDS market. Here are some further reflections, via Deutsche Bank’s Jim Reid.
First, Portugal’s 5-year CDS (+28bps yesterday, and +58bps over 48 hours) traded wider than every single name in the iTraxx Main (composed of 125 corporate constituents), except, predictably for Banco Espirito Santo (+70bp wider yesterday to close at 260bp).
Second, there are now 5 members of SovX Western Europe (Greece, Portugal, Ireland, Spain, Italy) that now trade wider than the 8th widest name in iTraxx Main.
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