Gavekal Capital: A Tick Back Up in European CDS

Tuesday, July 8, 2014

A Tick Back Up in European CDS

Credit default swaps (CDS)-- the insurance against non-payment for fixed income products-- have fallen across Europe since reaching highs in 2012:


After the ECB's early June announcement of extraordinary measures, CDS fell abruptly-- but yields have creeped back towards pre-announcement levels in the last couple of weeks (especially in Portugal):