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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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Thu, 09/15/2011 - 08:25 | 1672586 HITMAN56
HITMAN56's picture

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

Thu, 09/15/2011 - 08:27 | 1672592 Tyler Durden
Tyler Durden's picture

Google "Inverted Curve"

Thu, 09/15/2011 - 08:27 | 1672591 buzzsaw99
buzzsaw99's picture


Thu, 09/15/2011 - 08:28 | 1672593 unky
unky's picture

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

Thu, 09/15/2011 - 08:31 | 1672601 HoofHearted
HoofHearted's picture

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

Thu, 09/15/2011 - 08:32 | 1672602 oogs66
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

Thu, 09/15/2011 - 08:36 | 1672609 ZeroPower
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

Thu, 09/15/2011 - 08:28 | 1672594 EscapeKey
EscapeKey's picture

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

Thu, 09/15/2011 - 08:40 | 1672631 ArkansasAngie
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.

Thu, 09/15/2011 - 08:28 | 1672596 hungarianboy
hungarianboy's picture

How is your gold?

Thu, 09/15/2011 - 08:29 | 1672597 pupton
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?

Thu, 09/15/2011 - 08:33 | 1672604 oogs66
oogs66's picture

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

Thu, 09/15/2011 - 08:38 | 1672616 Belarus
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?

Thu, 09/15/2011 - 08:47 | 1672666 ArkansasAngie
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. 

Thu, 09/15/2011 - 09:17 | 1672827 BetTheHouse
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??

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