The last time markets scrambled for protection against sovereign defaults was over European country collapse in the summer of 2012 around the time Mario Draghi introduced a non-existent measure to allow Europe's nations to engage in zero reforms while their bond yields plunged. This time it is the emerging markets.
- Argentina +139bps at 2562.07bps, hit highest since Sept.
- Venezuela +81bps at 1398.19bps, highest since 2010
- Turkey +11.6bps at 276.7bps, highest since June 2012
- South Africa +10bps at 236bps, highest since Sept.
Of course, CDS aren't telling us anything (capital-controlled) FX hasn't already made quite clear.