Sharks Circling: BAC CDS Near All-Time High

Earlier I showed the average U.S. bank CDS.

Let’s break that down and take a look at BAC.

The chart of 1-year CDS speaks for itself: spreads are near the 2009 peak. Meanwhile the 5-year spreads are higher than ever, as the yield curve inverts on the long end.

Just another reason why money is flowing out of large time deposits and into noninterest-bearing transaction accounts, which have no FDIC insurance limit.

BAC CDS

Photo: Bloomberg

This post originally appeared at Beta Odds.

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 research.businessinsider.com.au.