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:

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

Monte CDS moving back up:

French CDS moving back up:

Italy CDS moving back up:

There has been absolutely NO rally in European banks:

Turkish CDS currently near their highs:

US Corporate bond spreads not confirming recent equity strength:

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

BofA Merrill Lynch Liquidity Index not confirming market strength recently:

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

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