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.


Photo: Bloomberg

This post originally appeared at Beta Odds.

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