Spanish CDS Storms Above 600bps

Tyler Durden's picture


Spanish 5Y CDS broke back above 600bps (just shy of their record 603bps level) and 35bps wider of their intrday low spread from 5 hours ago. Spanish 10Y yields are over 50bps wider/higher than their intraday lows just after the open in Europe. Italy also just broke 550bps. EURUSD is almost unch now.

Spain 5Y CDS > 600bps

Italy 5Y CDS > 550bps

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Mon, 06/11/2012 - 10:39 | 2514464 tu-ne-cede-malis
tu-ne-cede-malis's picture

U-Shaped recovery.

Mon, 06/11/2012 - 10:43 | 2514495 Chief KnocAHoma
Chief KnocAHoma's picture

You know if I were Romney I might come out and say..."UH I was kidding. I really don't want this fucking mess! Elect the other guy."


Mon, 06/11/2012 - 10:47 | 2514531 SWRichmond
SWRichmond's picture

It's not a real black swan if we've seen it circling for months years now...

Mon, 06/11/2012 - 10:53 | 2514567 ZerOhead
ZerOhead's picture

Black vulture?


Mon, 06/11/2012 - 11:02 | 2514611 Dr. Engali
Dr. Engali's picture

That's racist you terrorist.

Mon, 06/11/2012 - 11:05 | 2514627 GMadScientist
GMadScientist's picture

California Condor.

Mon, 06/11/2012 - 11:36 | 2514784 Law97
Law97's picture

More like a dead canary.

Mon, 06/11/2012 - 10:56 | 2514580 barkingbill
barkingbill's picture

thats if he actually has good intentions....nero had a lot of fun watching rome burn. the clampdown might give quite the kick to a sicko....moving all that money offshore, putting people in prison, expanding the wars....the smell of destruction and tyranny in the morning....

Mon, 06/11/2012 - 11:16 | 2514621 Chief KnocAHoma
Chief KnocAHoma's picture


Just last month our start up company launched an exciting new product to raging success. We are now the World's best guillotine manufacturing company. Demand for our product has been extremely high and largely well received except for one product defect.

Our original model was intended to kill bankers slowly, with a great deal of pain. The jagged edge blade was intended to only partially cut off the offender's head on the initial drop. This feature was intended to allow the executioner the opportunity to retract the blade, leaving the offender writhing and wailing in pain.

Unfortunately, there have been reports of our product lopping off skulls on the first drop, thus leaving crowds disappointed. These mobs want a justice equal to the pain they have suffered, not quick painless retribution. For this defect our company offers a sincere apology.

We recommend, in the future, switch men drop the blade from lower heights, or simply email us and we will send you free of charge two rusty and dull axes which can be used to remove the feet of your scumbag banker right before the crowd drags him to the stage.

And again, thank you for your business.



Mon, 06/11/2012 - 10:57 | 2514586 BurningFuld
BurningFuld's picture

No kidding. That fact that he is running proves what an idiot he is.

Mon, 06/11/2012 - 11:16 | 2514685 Dr. Richard Head
Dr. Richard Head's picture

Chances of the implosion happening during the next administration means the next POTUS gets to blame the last guy.  I am having a real hard time trying to figure out if I should vote for Obama or Romney to let them have the fun of clean up.  Voting in Romney means he will blame Obama for the train wreck.  Voting in Obama, he will blame Bush and the GOP house for not stimulating the sheep enough.  Both sides are sheep fuckers, but we need one side of the reb/blue line to see the sham for what it is. 

Either way, I don't believe I will be voting in this next election, unless it is to vote against some tax increase.  I will, like I do so many of the votes, leave the choice between two different sheep fuckers blank for POTUS blank. 

Mon, 06/11/2012 - 12:51 | 2515170 twh99
twh99's picture

You're assuming of course that the implosion happens after the next election.


At this point I am not so confident that it will happen so late.  I'm thinking October.

Mon, 06/11/2012 - 10:47 | 2514529 Cult_of_Reason
Cult_of_Reason's picture

Non "voluntary" subordination is a CDS trigger.

Mon, 06/11/2012 - 10:48 | 2514543 maxmad
maxmad's picture

Very true!  That should trigger the CDS's

Mon, 06/11/2012 - 10:57 | 2514562 hedgeless_horseman
hedgeless_horseman's picture



If ISDA says it's safe to surf, it's safe to surf. Right? 

Why would the determination committee compr(om)ised of a bunch of banks that both write and own CDS lie?


Voting Dealers
Bank of America N.A.
Barclays Bank plc
BNP Paribas
Citibank, N.A.
Credit Suisse International
Deutsche Bank AG
Goldman Sachs International
JPMorgan Chase Bank, N.A.
Morgan Stanley & Co. International plc

Consultative Dealers
Nomura International plc
Société Générale

Voting Non-Dealers
BlueMountain Capital Management, LLC (Second Term Non-dealer)
Citadel LLC (First Term Non-dealer)
D.E. Shaw Group & Co., L.P. (First Term Non-dealer)
Elliott Management Corporation (Third Term Non-dealer)
Pacific Investment Management Co., LLC (Second Term Non-dealer)

Consultative Non-Dealer
MetLife, Inc



Mon, 06/11/2012 - 11:02 | 2514613 HarryM
HarryM's picture

I'm really getting confused 

I thought the idea was to drive the market down before the Fed meeting so we get more QE.


Mon, 06/11/2012 - 10:39 | 2514466 bshirley1968
bshirley1968's picture

What is it they like to say, "Can't eat those CDS's".

Mon, 06/11/2012 - 10:40 | 2514473 Cognitive Dissonance
Cognitive Dissonance's picture

They say the life span of fruit flies is measured in hours.

Mon, 06/11/2012 - 10:54 | 2514575 metastar
metastar's picture

I thought Spanish Fly was supposed to make you strong.

Mon, 06/11/2012 - 11:00 | 2514596 mcguire
mcguire's picture

time flies like an arrow.  fruit flies like a banana.  -g. marx

Mon, 06/11/2012 - 11:01 | 2514597 mcguire
mcguire's picture

time flies like an arrow.  fruit flies like a banana.  -g. marx

Mon, 06/11/2012 - 10:40 | 2514477 Dr. Engali
Dr. Engali's picture

I thought they fixed this problem. So what is the probability that a CDS will ever pay off? Maybe there is a market for that. a Cds in case your CDS doesn't pay off........Like an ogre it has layers bitchez!

Mon, 06/11/2012 - 10:42 | 2514488 bshirley1968
bshirley1968's picture

Just like a casino.  Come up with another table with a new way to take the stupid crowd's money.

Mon, 06/11/2012 - 11:03 | 2514616 insanelysane
insanelysane's picture

What are you talking about?  I have a system to win 110% of the time at pai gow poker. <sarc off>

Mon, 06/11/2012 - 10:42 | 2514490 Vincent Vega
Vincent Vega's picture

Shhhhh, don't give these cocksuckers any more ideas for any more derivatives.

Mon, 06/11/2012 - 10:44 | 2514503 bshirley1968
bshirley1968's picture

Oh yeah!  We want derivatives out the wazoo for these punks.  One day they will be in their own universe of currency and derivatives and hopefully far enough away so that the rest of us can get back to normality/reality.

Mon, 06/11/2012 - 10:46 | 2514514 NetDamage
NetDamage's picture

FIAT money is a derivative technically speaking

Mon, 06/11/2012 - 11:00 | 2514593 LouisDega
LouisDega's picture

My 7-11 coffee cost me 3 derivatives. Why did the sales lady say 3 dollars?

Mon, 06/11/2012 - 11:02 | 2514612 canardo
canardo's picture

It's just historical, don't worry about it. Here, have some prescription medication and a tv set.

Mon, 06/11/2012 - 10:49 | 2514542 EscapeKey
EscapeKey's picture

They did "fix" it. They refused to accept that Greece was a credit event.

Which makes CDS "protection" sound paradoxical.

Mon, 06/11/2012 - 10:43 | 2514498 stocktivity
stocktivity's picture

Yet European markets continue to rise...bizarre (only word I can think of to explain it).

Mon, 06/11/2012 - 10:45 | 2514518 Dr. Engali
Dr. Engali's picture

Yeah but they are fading.....I'll be the anti Maria B......"Markets are well off their highs".

Mon, 06/11/2012 - 10:46 | 2514519 bshirley1968
bshirley1968's picture

Not for long.  I can't believe the sell off we have already seen this morning.  After Asia's move, I expected Europe to be ripping higher today but things are getting weaker by the minute.

Mon, 06/11/2012 - 10:53 | 2514571 dingoj
dingoj's picture

Everybody was astir over the weekend Europe and EUR would go through the roof. Everybody was congratulating themselves how they stepped out of their shorts on Friday. Hope they had time to cash in. Europe's tinted scarlet now!

Mon, 06/11/2012 - 10:59 | 2514598 barkingbill
barkingbill's picture

im in europe right now and i can tell you. for the most part people are in la la land thinking their leaders were fix everything. there is some concern, but mostly everybody wants to stay confident, just like in the states. 

Mon, 06/11/2012 - 10:59 | 2514599 barkingbill
barkingbill's picture

im in europe right now and i can tell you. for the most part people are in la la land thinking their leaders were fix everything. there is some concern, but mostly everybody wants to stay confident, just like in the states. 

Mon, 06/11/2012 - 12:26 | 2515073 Nobody For President
Nobody For President's picture

Uh, not quite. Fading at the close, with Spain going red after the bank 'save' - imagine that! Footsie and CAC closed red as well. I suspect tomorrow will be red from the git-go, but I'm often wrong about this...

Mon, 06/11/2012 - 10:47 | 2514525 booboo
booboo's picture

Mo jizzle fizzle

Mon, 06/11/2012 - 10:48 | 2514545 bshirley1968
bshirley1968's picture

Sobody is about to wake up and realize that no matter what (print, don't print, bailout, don't bailout), I probably should buy some gold.

Mon, 06/11/2012 - 10:49 | 2514549 Father Lucifer
Father Lucifer's picture

Send in the dogs!!!!!!!!!!!!

Mon, 06/11/2012 - 12:05 | 2514969 noses
noses's picture

Mercy! They would be buthcered and eaten.

Mon, 06/11/2012 - 10:50 | 2514554 dingoj
dingoj's picture

Red suits you so well, Europe!

Mon, 06/11/2012 - 10:50 | 2514557 MacedonianGlory
MacedonianGlory's picture

Do it like Greece

Mon, 06/11/2012 - 10:55 | 2514573 WhyDoesItHurtWh...
WhyDoesItHurtWhen iPee's picture

......"Markets are well off her thighs".

there fixed it.

Mon, 06/11/2012 - 10:54 | 2514574 junkyardjack
junkyardjack's picture

So QE3 will probably get a 1 week bounce before QE4 needs to be announced right?...

Mon, 06/11/2012 - 10:54 | 2514576 Dead Canary
Dead Canary's picture

This is what's known as a "\" shaped recovery.

Mon, 06/11/2012 - 11:06 | 2514610 dwdollar
dwdollar's picture

For now... soon it will be a "|" shaped recovery.

Straight up with hyperinflation.

Mon, 06/11/2012 - 10:54 | 2514577 eclectic syncretist
eclectic syncretist's picture

Churchill gives the "V"

Mon, 06/11/2012 - 10:57 | 2514579 Dr. Engali
Dr. Engali's picture

    Civilized people buy credit default swaps.

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