European sovereign CDS have been hitting new highs

Given the frequency of some of these upward movements in the credit default swap prices of some European countries, this could be an almost daily headline. But as some prices continue to break new levels, it is probably still important to at least pay attention to the frenzied panic that the prices seem to imply.

  • Spain CDS has hit 350 bps
  • Portugal CDS has hit 545 bps
  • Italy CDS has hit 230 bps

The iTraxx SovX Western Europe (WE) which is an index of the sovereign CDS of many European countries including the aforementioned ones has also crossed the 200 bps barrier for the first time rising 9 bps to 206 bps in trading yesterday.  Early trading today, however, shows a slight decline in the index with the SovX WE quoted at 192 bps around noon in London (7am EST New York time).

The rise up in European sovereign CDS also appears to be taking other non-European countries along for the ride with Asian and Australian indices like the iTraxx Asia and iTraxx Australia reaching new local highs.

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