Europe Is Lehman Brothers All Over Again

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.

Read more at FT Alphaville >

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at