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Credit Default Swaps Show Liquidity Risks Remain

Wed, Jun 6, 2018 - 11:34am

All charts courtesy of Bloomberg and Financial Sense® Wealth Management

Deutsche Bank credit default swaps (insurance against default risk) are moving back up today:

deutsche bank cds

Unicredit (Italian Bank) CDS moving back up after a 2-3 day respite while its stock price remains weak:

unicredit cds

unicredit stock price

Monte CDS moving back up:

monte cds

French CDS moving back up:

france cds

Italy CDS moving back up:

italy cds

There has been absolutely NO rally in European banks:

european banks

Turkish CDS currently near their highs:

turkey cds

US Corporate bond spreads not confirming recent equity strength:

us corporate bond spreads

US Junk and Investment Grade CDS near 1-year highs still:

us junk cds

BofA Merrill Lynch Liquidity Index not confirming market strength recently:

bofaml gfsi liquidity risk

Italian and Portuguese 1-yr bond spreads moving back up:

bond spreads

Past performance is no guarantee of future results. All indexes are unmanaged and cannot be invested into directly.

Additional risks are associated with international investing, such as currency fluctuations, political and economic stability, and differences in accounting standards.

About the Author

Chief Investment Officer
chris [dot] puplava [at] financialsense [dot] com ()