By Bondsquawk:
With the discussions around the Greek bailout on hold due to the Icelandic Ash Cloud, Greece CDS continues to drift to all time highs. With 10 billion in funding needs by the end of May, investors are clearly skeptical on the nation being able to secure this financing. Even if we were to give their funding the benefit of the doubt, the austerity measures the IMF and the European Union will force Greece to undertake could very much put it into a deeper recession and hampering the country’s ability to repay any debts. This seems to be what the credit markets are telling us…..
Greece 5yr CDS as of 9:20am EST
Portugal and Spanish CDS have also continued to widen. Here is the latest at where they’ve been seen to trade:
| CDS | 5YR | 10YR | 5Y1D | 5Y1W |
| —————— | ———— | ———- | —— | —— |
| AUSTRIA (100) | 62/66 | 67/71 | -1 | 9 |
| BELGIUM (25) | 63/67 | 68/72 | -1 | 8 |
| DENMARK (25) | 35/39 | 40/44 | 0 | 3 |
| FINLAND (25) | 26/29 | 29/33 | 0 | 5 |
| FRANCE (25) | 55/58 | 59/63 | 0 | 7 |
| GERMANY (25) | 34/36 | 38/41 | 0 | 6 |
| GREECE (100) | 450/470 | 400/430 | 5 | 80 |
| IRELAND (100) | 145/151 | 148/158 | -4 | 2 |
| ITALY (100) | 123/133 | 125/135 | -3 | 4 |
| NETHERLANDS (25) | 34/38 | 38/43 | 0 | 2 |
| NORWAY (25) | 15/19 | 18/22 | 0 | 0 |
| PORTUGAL (100) | 195/205 | 190/205 | -5 | 44 |
| SPAIN (100) | 146/156 | 149/159 | -2 | 22 |
| SWEDEN (100) | 33/37 | 36/40 | 0 | 2 |
| UK (100) | 74/78 | 78/82 | -1 | 5 |
| USA (25) | 37/43 | 41/47 | 0 | 2 |
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.
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