It’s not only Greece’s credit default swap spreads that are hitting record highs. Those for Spain and Portugal are as well, according to CMA:
We can’t see country-specific news on this, if anyone has it, feel free to comment. Thus far this seems to be simply contagion from uncertainty regarding Greece’s financial prospects.
Note that financials’ default spreads are rising as well right now.
Major U.S. financial stocks are falling as well, which at least makes sense with the above even if cause and effect are hard to determine. The ones below are down from about 1.5 – 2.8% each.
Overall, the S&P 500 Financials index is down about 0.5%, so the major U.S. financial names above are underperforming. It looks like fall-out from the regulatory threats Goldman is facing right now.
So there’s just a broad deterioration in perceived creditworthiness happening right now, but it is particularly severe for the sovereign nation above given that their spreads are hitting record highs.
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