Thursday, April 8, 2010

Greek CDS hit new record, Greek officials should be thankful they're even trading....

According to CMA Datavision, Greek credit-default swaps have hit a new record:


Instead of running around Europe and the USA proposing a ban on these securities, Greek officials would be thrilled to have them involved.  What freak of an investor would buy their debt without the ability to insure against default?

Right now the CDS are trading at 466.  That means if you buy 10billion euros of Greek ten year debt yielding 7.5%, it will cost you .466% to insure it.   What a minute, that's a GREAT trade!

Copyright 2010 AlphaNinja

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