At Least Greek CDS Is Tighter... Oh Wait, It Isn't

Tyler Durden's picture

Some may find it odd that afer all the measures taken to resolve the threat of a Greek bankruptcy and Eurozone explusion, it is just Greek CDS that are actually wider on the day. We suggest those "some" forget about reality and enjoy the latest massive short covering squeeze which will end only when it does and not a moment sooner.

5Y                     10Y                   5/10's             

  • GREECE            58/63  +1        59/63      -0.5/2.5                                                                                                           
  • ITALY               457/469  -5      434/448      -28/-14                           
  • SPAIN              380/390  -5      360/374      -25/-11                           
  • PORTUGAL     1100/1160 -10      875/945    -250/-190                           
  • IRELAND         800/840  -15      610/680    -205/-145                           
  • BELGIUM        260/270  -13      255/269      -8/2                             
  • FRANCE          172/176  -7    184.5/190.5    11/16                             
  • AUSTRIA        136/140  -7    151.5/159.5    15/20                             
  • UK                   81/85  -1        97/103      15/19                             
  • GERMANY      82.5/84.5 -0.5      99/104      16/20

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HITMAN56's picture

what are 5s/10s? I was just getting to know what 5yr is...and now there is 10yr and 5s/ TD?

unky's picture

Can someone please explain quick why Greece is lower than all the other countries ?

HoofHearted's picture

They dropped off two zeroes. It was giving Greece a complex...

oogs66's picture

It is now quoted in points. The rest are in spread. The bid/offer was too huge on Greece when quoted in spread so quoting in points make it seem more liquid

ZeroPower's picture

google for Big Bang CDS, convention from 2009 from ISDA.

There are 2 ways to quote CDS.... upfront pts, and in bps.

Quoting in 2000++ is redundant so more common to simply say in upfront pts how much GRE CDS costs you. I assure you, GRE is by far the highest quoted sov whether youre talking in pts upfront or bps

EscapeKey's picture

'Risk' has become completely meaningless. If one country goes, the entire world goes. Hence, all spreads ought to be 0.

ArkansasAngie's picture

That's the point.  They'd all be wiped out. 

I've pondered and my gut tells me if you took the top 10,000 individuals and families and forced them to deleverage and make good on their bets, 80% of them would be insolvent ... aka ... bankrupt.

This is a case of the general public is going to have to force these shatheads into involuntary bankruptcy -- chapter 7.  And ... you don't get to keep your home, car or retirement account.

pupton's picture

Hitman I believe that is five and ten year debt, but I am with you, I not familiar enough with these to understand this chart. Maybe one of our fellow ZHers can explain this chart to us newbs?

oogs66's picture

On bright side they can now save Greece again so stocks can go up a few more per cent

Belarus's picture

Peter T made a good point about buying 1 yr Greek bonds on a risk to reward basis....those with access to CDS insurance, made buy both. No?

ArkansasAngie's picture

BTW:  Isn't this really a case of check kiting going bad. 

It's all "1's and 0's" chasing around skynet isn't it.  At least when I go to the races I know first hand whether the nag has pissed or not in the last 5 minutes. 

BetTheHouse's picture

But ... but ... but Merkel and Sarkozy and G-pap had a CONFERENCE CALL!  How can this be?  Didn't they hear about the conference call??