I don't think there's been any federalist news in the papers recently...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.Hard to feel good about being less sound than Quebec. Still, it could be worse.
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.
Source: Free Exchange. What's the next stop, Eastern European nations?