Sept. 17 (Bloomberg) -- Investors are paying record-high premiums to insure against default on European sovereign bonds relative to corporate notes as governments struggle to reduce fiscal deficits while companies repair balance sheets. An index of credit-default swaps on 15 European governments now exceeds a gauge of investment-grade credit risk by about 48 basis points, according to data from CMA and JPMorgan Chase & Co. Corporate swaps are historically more expensive than sovereign contracts. http://noir.bloomberg.com/apps/news?pid=20601087&sid=a6_HpprTNGBQ&pos=3
This news will be ignored, investors and money managers push this type of news aside. Spx to 1788 by 2011. :eek: