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Credit Default Swaps Show Liquidity Risks Remain

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:

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.

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