Spreads on credit-default swaps for U.S. government debt jumped to 97 basis point

Discussion in 'Wall St. News' started by W4rl0ck, Mar 10, 2009.

  1. W4rl0ck


    Is there somewhere to track these swaps on the interwebs???


    U.S. sovereign-credit spreads rise sevenfold in year
    Risk gauge outpaces measure of corporate-credit risk as U.S. bails out banks

    By Laura Mandaro, MarketWatch
    Last update: 7:19 p.m. EDT March 10, 2009

    SAN FRANCISCO (MarketWatch) -- The cost of buying protection against the risk that the United States will default on its mounting debt has surged in the past months, outpacing the rise in corporate-credit costs, now that the government has absorbed more private-sector debt.
    The spreads on credit-default swaps for U.S. government debt jumped to 97 basis points Tuesday, nearly seven times higher than a year ago and 60% higher than the end of last year, to a level roughly in line with those of France, according to data supplied by Markit. The spreads also hit a record last week.
    In contrast, an index that tracks the cost of buying credit protection against defaults on North American companies with investment-grade ratings -- the Markit CDX.NA.IG index -- has not even doubled in the past year. The index, which includes CDS on blue-chip companies like Altria Group (MO) and Bristol-Meyers Squibb Co. (BMY) , has risen 30% this year. ...
  2. I've wondered about this too because aren't credit default swaps OTC contracts? If that's the case, which contract do they base these numbers on?
  3. I don't know where you can see this on the internet for free, but you can see live prices on Bloomberg. You can also check as sometimes Markit publishes something...