May 4 (Bloomberg) -- The cost of insuring against default on sovereign bonds rose on concern that the $144 billion aid package for Greece may not solve the nation’s deficit crisis or prevent contagion to Europe’s debt-ridden economies.
Credit-default swaps on Greece surged 84.5 basis points to 731, according to CMA DataVision prices, implying an almost 45 percent probability of default over five years. Contracts on Portugal, Spain, Italy and Ireland also rose.--
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Comment: Like stubborn kids, many market operators (including some of the big shots) still refuse to accept that they have bet on the wrong horse.
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