The CDS market, as always, is prophetic to the dot: after main deriskers in the past two weeks were Spain, Portugal and France, so far the spread blow out in these markets has materialized like a Swiss watch. Which is why Ambrose Evans-Pritchard better be looking at this week's DTCC data, because the credit market is flashing a bright red warning light over his favorite bankrupt country - the UK (incidentally, the week's largest net derisker, just after Goldman Sachs). Second in order of sovereign implosion - Ireland. The British Isles, at least according to CDS traders who time after time prove they have far more sense than their equity equivalents, are about to become a hotbed of credit activity, and not in a good way. The other countries that fill out the top 10 deriskers in the prior week: Brazil, Germany (yeah, failed auctions do that), Argentina (yeah, persistent threat of default does that too), Mexico (yeah, living next to a money printing terrorist does that), Ukraine, Korea, Belgium and China.
On the other end, the names with the most net notional reduction indicate that once again, nobody gives a rat's ass about Greece anymore (at least in derivatives... cash wishes it could say the same). Spain led the reriskers. After today's disclosure that the country is just over 20% done with funding its 2010 debt needs, this may change quite fast. The other countries in the group are irrelevant.
Full list. (we did not add the "stolen from ZH watermark" so please just quote us when you steal this, deal?)