The Time To Re-Re-Reban CDS Is Here As Italian Spreads Explode

Tyler Durden's picture

The first three CDS ban attempts have failed. So has the coordinated ISDA attempt to make sovereign CDS a product with absolutely no functionality. The fourth time will be the charm though. The EFSF guarantees it! On the other hand, think of the massive EPS profit that Italy will post this quarter as a result of today's CDS blow out courtesy of the DVA accounting gimmick. Surely Dick Bove will imminently upgrade it to Dodecatuple Turbo Buy.

ITALY           439/447 +38                               
SPAIN             333/341 +22                                 
PORTUGAL      950/980 +5                                 
IRELAND        675/705 +20                              
GREECE           53/56  +1                                                                                                                  
BELGIUM        265/275 +28                                   
FRANCE         172/176 +14                                
AUSTRIA       139/144 +14.5                            
UK                  81/85  +7                          
GERMANY        82/85  +7     

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Fips_OnTheSpot's picture

+38 +29 ...? No wait, confused.


Just ban it!

lolmao500's picture

If sources are correct the ECB already intervened at 5:50am this morning in the italian 10 year bonds. But they are afraid to announce it because they had so little effect. It weared off in 20 minutes. If this is true then the Vigilantes will eat the ESFS alive.

slaughterer's picture

ESFS => this winter's "Big Short."  

ESFS => downhill skiing from here.   

GeneMarchbanks's picture

EFSF is about as alive as MF Global.

topcallingtroll's picture

Aahhh. The return of the bond vigilante. Long time no see. You planning to stick around this time or is this just another quickie?

Zero Govt's picture

You mean EFSF ...Eurozone Financial Suicide Fund

Eaten alive by vigilantes?'s going to jump out of the 18th floor at Brussels HQ all by itself

kaiserhoff's picture

Let's make sure no financial information gets out about nobody.  That will fix it.

DormRoom's picture

Germany strapped itself to a financial bomb.  Greece has signed itself to 7 years of economic depression, thereby brutalizing its citizens.  And they can't exit.  For if they do, it would set off the EFSF bomb.


Greece cannot adjust its Euro cost by 30% in that time frame, without economic depression, to be competitive.


QED.  If Greece exits -> Germany-Greece armed conflicts?


1912. all over again.  WE know what the the theatre of war will be

Ghordius's picture

DormRoom, I'm getting war fatigue here.

Explain again, how would Greece invade Germany in your "please have Germany in another war fantasy?"

Or do you really mean Germany would be in any way irate for Greece leaving the EZ?

Do you have any clue abot the two countries except from your comics?

DormRoom's picture

you've misinterpreted my comments.


If Greece exits, it would set off the EFSF bomb, and Germany would face huge loses, after backstopping Europe.  So Germany cannot allow Greece to exit.


Therefore, if Greece exits (alleviate the economic depression on its citizen), it would antagonize Germany, possible leading to armed conflict.


This is assuming the bailout passes the legislature.

Innocent Bystander's picture

Apparently ECB did.  This is a repeat of August,

Japanese intervention followed by ECB intervention in Spanish / Italian Bonds.

October - Japanese intervention followed by ECB in Italian bonds. So far everything is as per plan.. or is it?

on another note why bother driving the CDS higher, when ISDA has made it irrelevant? food for thought


bill1102inf's picture

GOLD Bitchezzz!!! Is going down.

Zero Govt's picture

Yes Gold's down '1.5% today ...but not as fast as bankers (BNP down -15% today, Soc-Gen down -9%, Deutsche down -8%) or Central Bankers and their Fiat money

it's relative mate ...relative to fraud and insolvency

tmosley's picture

Indicating that it is time to buy.

Of course, I prefer to buy silver, which is still a spectacular bargain.

HoofHearted's picture

Can we leverage up the EFSF 2 trillion times? If so, then we've got plenty of euros to take care of all of this...

irishlink's picture

Belgium is starting to look very shaky indeed ,but it might be ok as there is not a government to screw things up further.

uhb's picture

double plus good

Hard1's picture

Instead of banning them, the authorities are trying to kill the market by making them not an effective hedge.   After what they are attempting to make the banks shove down their throats in Greece, anybody who has European credit risk hedged with CDS should be selling the bonds right now!

dasein211's picture

Zombie bond market- Bitchez!!

slaughterer's picture

Could be CDS buying to hedge new risk acquisitions in EZ.  But I somehow doubt it. 

Note to self's picture

I thought all soveriegn CDS were disarmed last week. What's goin on?

Zero Govt's picture

it's a political 'solution'

which of course means from hereon everything's going completely fuking pear-shaped

RobotTrader's picture

The time to buy stocks is when credit spreads are blowing out and the news flow is at its worst.

Especially when the tape seems to buck off the worst of the worst news time and time again.

maxmad's picture

Best time to buy, is when ROBO capitulates!

mendigo's picture

You are the true contrarian.

Vaya con Dios amigo.

willien1derland's picture

John Corzine to lead the EFSF - Tragic Irony or Poetic Justice?

Oh regional Indian's picture

I'll take a little of both please.


CrashisOptimistic's picture

Well, if swaps are neutered and you can't hedge default risk in a bond, then you either don't buy the bond, sell what you have, or if you think your clients are complete morons, you buy the bonds only if you can get 15% on 5 year paper.

The countering wind is the fact that a lot of money is made buying and selling swaps, from a commission perspective.  Every one of those salesmen will be screaming into their telephones that the instrument still has value.

They'll lose that battle.

common_sense's picture

Ban bank shorts


Ban greek bonds

Ban stocks

Ban everything.... Ban free capitalist market, because we go now for a NEW MODERN COMUNISM...CALLED....CHINA !!! so we continue... Ban internet, Ban communication, Ban occupy wall street, Ban Tiannanmen... oh my goc, what a nice futur !!!!

Balmyone's picture

The ECB needs to get to work and start buying up those worthless Italian bonds.

Otherwise, 7% here we come, and then Italy goes with hat in hand for a bailout.

Draghi is Italian, no.  Will he turn the printing press on for his homeland.

I wonder if Italian's are buying USD, CHF, JPY, or perhaps GOLD and SILVER.


FinalCollapse's picture

I think they have voting mechanism in ECB - no? Draghi cannot drag ECB anywhere without German's permission.

Lord Welligton's picture

Surely if the EU introduced a regulation to stop time everything would be just dandy.

BurningFuld's picture

Gold going down? Bahaha. I've got to get more tomorrow. The PRINTING is not far off now boys!

mendigo's picture

Seems like to news flow is coming a little faster now - TSHF?

AngryGerman's picture

centillion euro bailout coming

Saxxon's picture

Whoa, you guys a swarming a bit.  This is an orderly selloff and  understandable given the runup. 

Some of us shorts who have been smoking seeds & stems all month are getting a taste of bud today and getting all kinds of high . . .

I covered this a.m. premarket.  Yes, a tad early but we are only back to Thursday in the SPY and I reckon if it can hold 127 the day is a success for the bulls.

vote_libertarian_party's picture my 2013 TBT calls.  It's a small dollar amount but could definitely pay off big if things get Greek-ified.

Rat King's picture

Robo does appear to have the recipe for happiness down pretty well

Tompooz's picture



"This video contains content from EMI, who has blocked it in youThis video contains content from EMI, who has blocked it in your country on copyright grounds. r country on copyright grounds. Sorry about that. The beginning of copyright censorship.


prophet's picture

Insurance - a mechanism whereby the majority of participants pay for something they will not use so that those few who need it will have use of that something.

Pooling of risk is poorly understood.