Wednesday, September 10, 2008


Posted without much comment, because I'm chuckling too much:
The price of credit default swaps on five-year US government debt hit a record 18 basis points in early trading, according to CMA Datavision. This means that it costs $18,000 a year to buy insurance on $10m of US government debt.

Tim Backshall, chief strategist at Credit Derivatives Research, said the price implied that the US was more likely to default on its obligations than Japan, Germany, France, Quebec, the Netherlands and several Scandinavian countries.
Hard to feel good about being less sound than Quebec. Still, it could be worse.
I don't think there's been any federalist news in the papers recently...

Source: Free Exchange. What's the next stop, Eastern European nations?

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