Sovereign CDSs balloon as equity markets crash
CDS spreads on vulnerable eurozone countries widened dramatically today as stock markets crashed over uncertainty surrounding the Greek bailout.
Credit default swap (CDS) spreads on Greece and other European countries increased today, reflecting market doubt that the weekend's German-led bailout will save the country – and the eurozone – from financial disaster.
The cost of five-year CDS protection on Greek sovereign debt was at 742 basis points at 4:50pm London time today, out from 646.5bp at close of trading yesterday in New York, according to market information provider CMA DataVision.
There were similar blowouts for other eurozone
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