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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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."


SWRichmond's picture

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

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....

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.

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And again, thank you for your business.



BurningFuld's picture

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

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. 

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.

Cult_of_Reason's picture

Non "voluntary" subordination is a CDS trigger.

maxmad's picture

Very true!  That should trigger the CDS's

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



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.


bshirley1968's picture

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

Cognitive Dissonance's picture

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

metastar's picture

I thought Spanish Fly was supposed to make you strong.

mcguire's picture

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

mcguire's picture

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

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!

bshirley1968's picture

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

insanelysane's picture

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

Vincent Vega's picture

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

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.

NetDamage's picture

FIAT money is a derivative technically speaking

LouisDega's picture

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

canardo's picture

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

EscapeKey's picture

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

Which makes CDS "protection" sound paradoxical.

stocktivity's picture

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

Dr. Engali's picture

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

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.

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!

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. 

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. 

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...

booboo's picture

Mo jizzle fizzle

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.

Father Lucifer's picture

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

dingoj's picture

Red suits you so well, Europe!

WhyDoesItHurtWhen iPee's picture

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

there fixed it.

junkyardjack's picture

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

Dead Canary's picture

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

dwdollar's picture

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

Straight up with hyperinflation.

Dr. Engali's picture

    Civilized people buy credit default swaps.