All European CDS Now Triple-Digit Offered

Tyler Durden's picture

As expected, German CDS are soaring in the aftermath of the failed auction. And even UK CDS are now offered triple digits. What is ironic is that the UK is in far worse shape than Germany. That UK-Germany compression trade gets more attractive by the day.

                        5Y                     10Y            5/10's
ITALY            555/565  +9    517.5/537.5   -42/-27                          
SPAIN           484/494  +2    448.5/468.5    -35/-20                          
PORTUGAL  1050/1080  -20    800/870     -260/-200                        
IRELAND       700/730  -5      530/600      -180/-120                        
GREECE       61.5/64.5  0      62.5/66.5         0/3
BELGIUM       355/370  +8      342/362      -18/-3                           
FRANCE        242/248  +3      257/267        13/17                           
AUSTRIA      226/232  +4    236.5/246.5     10/15                          
UK                 97/101  +2      112/118        14/18                           
GERMANY  106.5/110.5 +6    125.5/131.5    17/21

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Sudden Debt's picture








put_peter's picture

Triple digits... hmm... more than double digits.... must be better!!!

Sudden Debt's picture

It's like porn movies.

XXX is better than XX


put_peter's picture

Yes indeed, this is like watching a porn movie.

Alex Kintner's picture

'Triple digits' is not mentioned in my "CDS for Dummies" book.  But when Tyler gets ants in his pants, it's usually bad news. Still yeah, 3 seems better than 2.

Archduke's picture

it's the cost in basis points to ensure said notional  per annum, so 500 = 5%.

it should be quadruple digits for Portugal, Greece (or undefined since haircut).

Alex Kintner's picture

Thank you. Now why didn't Tyler just say that? The man is ObTerse.

Archduke's picture

probably because his(her) vantage point is that of a market maker.

that's why he(she) quotes the CDS bid/ask spread,  IRS 5s10s, and flys.

GeneMarchbanks's picture

UK ... welcome...

How is it that this shithole continues to get by unnoticed is beyond me. Oh that's right, the city of London is the Mecca of banking fraud... silly me.

jiggerjuice's picture

How would one compress trade doz nuts?

Joeprimo55's picture

We are going to need a bigger rumor...

Sudden Debt's picture

We need A VOLCANO!!!!!!!!!!!

or earthshake...

or flood...

or pandemic...

or Obama to get a second term...


Miss Expectations's picture

There are 4 to 5 times more earthquakes now that there were just before the Japanese earthquake.  Here's the forecast:

Carlyle Groupie's picture

"That UK-Germany compression trade gets more attractive by the day"

I wouldn't touch that. A double headed snake. Careful.

agent default's picture

This debt crisis will lead to a currency crisis.  The big reset is coming.

BlueStreet's picture

Germany is finding out that shit doesn't stink quite as bad from 10 feet away, but it still stinks.



qussl3's picture

Wonder what they will pull off this time for a rally.

It's over if the ECB doesnt print, not even the core can roll their debt.

The ECB is playing full retard, at this rate the Chinese will be very happy buyers of EUR assets on the cheap. Print and the Chinese might as well burn their paper.


Zero Govt's picture

What is ironic is that the UK is in far worse shape than Germany. 

The UK has had a left-wing (Marxist) Party in power for 14 years... now it has a centre-right (socialist)

Germany has a centre-right (socialist) Party in power for 8 years with an East German (socialist) as President bailing out every Marxist-Socialist tosser in Europe 

Don't worry it won't take Germany long to catch up in the bankruptcy stakes... socialism has only one dirction ...down the sewer 

if you're looking for the spreads reason factor in Germany backstopping Europe, the UK's exposure is not quite so exposed (stupid)

This is now a game of 'Who Holds the Bag Last?' ...which peanut-sized brain will have the debt hammer fall on them:

..will it be the East German retard, Angela Merkel ?

..or will it be Ivy League moron, Ben Bernanke ?

The suspense is intoxicating

Coldfire's picture

When you say "the ECB must print" you are saying the ECB must steal from all EUR asset owners. Printing = theft. Don't be an asshole. Don't steal. (Hey, it's in the Bible).

EscapeKey's picture

What does the bible say about credit default swaps and reverse repos?

john39's picture

Covered in the part about not lying.

falak pema's picture

GS hots up the Euro attack.... Merkel, Merkel, can you take the heat?

These markets never attack the deader than dead FED spreads...WHy?

Of course; exorbitant privilege!!

Licence to print to infinity without any downside on credit rating of US bonds!

James Bond never had such licence to kill!

Wow, now THAT is a true market. Supply and demand, pure mirage.

Yet we talk about markets as being a fair system to measure ALL other sovereigns.

Wow, regulatory capture!!! Of a dimension on its own.

When Moodys and S&P work for GS and WS PDs what else can you expect?

So back to the real world and to Euro bashing and WS levitation....or vain attempts at it as the Titanic sinks...but Hush the FED will fix that.

Who cares about the rest!!!


Archduke's picture

@Tyler:  according to The Guardian Barosso is floating around a eurobond proposal.



michaelsmith_9's picture

This should only accelerate the selloff for equities.  Clearly risk off is the theme, which was expected. Here is an updated look at the DX and CL.  Both indicate that equities should remain very heavy and are headed much lower in the days ahead.

NetDamage's picture

My girlfriend went to school for 7 years. She just asked me why governments have to borrow money. Seems to me she deserves Krugmans "nobel prize".

spinone's picture

People stil buy CDS?  How quaint. 

In this environment they'll never pay off.

John Bull's picture



Please add the Netherlands also.