Greece CDS Hits Fresh Record; Funding Crisis Now Official

The economic situation in Greece is getting worse by the day. Despite PM Papandreou's promises to the contrary, it is probably safe to say that the country is now in a full blown funding crisis; this is reflected in the country's fresh new record in its default risk as seen by credit traders. At 346 bps, it is just a matter of time before all hedges cover positions and this number explodes. Now it is the Eurozone's turn to promise it will not expel Greece from the monetary union: we think the likelihood of this action is increasing proportional to the number of times this possibility is refuted.