Sovereign Default Swaps at Record Over Companies on Deficits

Discussion in 'Economics' started by ASusilovic, Sep 17, 2010.

  1. 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.
  2. S2007S


    This news will be ignored, investors and money managers push this type of news aside. Spx to 1788 by 2011.