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U.S. Treasury CDS hit record wides (reuters)

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  • U.S. Treasury CDS hit record wides (reuters)

    http://www.reuters.com/article/marke...46382720081124

    NEW YORK, Nov 24 (Reuters) - The spread or risk premium on 10-year U.S. Treasury credit default swaps hit record wide levels on Monday, prompted by worries about how the cost of rescuing banks and carmakers would affect U.S. creditworthiness, CMA DataVision said.
    Is a credit downgrade of the US inevitable?

  • #2
    Re: U.S. Treasury CDS hit record wides (reuters)

    Originally posted by grizam303 View Post
    http://www.reuters.com/article/marke...46382720081124



    Is a credit downgrade of the US inevitable?
    I think so.

    Stay away from the US$, I think a collapse is imminent.

    Comment


    • #3
      Re: U.S. Treasury CDS hit record wides (reuters)

      EJ what does this mean?

      Comment


      • #4
        Re: U.S. Treasury CDS hit record wides (reuters)

        Originally posted by RickBishop View Post
        EJ what does this mean?
        The insurance premium against default of the US Govt on its debt has risen again.

        [Alternatively, the premium could be pricing in counterpart risk?]
        It's Economics vs Thermodynamics. Thermodynamics wins.

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