What It Means The Portuguese Sovereign CDS Curve Is Now Inverted

Here’s a brilliant chart from FT Alphaville. It’s the Portuguese sovereign CDS curve, and as you see it’s inverted.

In other words, investors think there’s a greater chance of a Portuguese default in the short term than in the long term.

The time is right now for the ECB to solve the problem. If they can do it, they’re in good shape. If they can’t come up with a fix, then a bust could be imminent.


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.