Fitch: Ireland's CDS Widen 24%; Portugal Comes Out 22%

Fitch: Irelands CDS Widen 24%; Portugal Comes Out 22%
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Τρι, 9 Νοεμβρίου 2010 - 18:34
Fitch Solutions-New York-09 November 2010: Credit default swap (CDS) for European sovereigns and financials continue to underperform, with Ireland and Portugal driving the trend, according to Fitch Solutions in its latest Risk and Performance Monitor.
Fitch Solutions- New York - 09 November 2010 : Credit default swap (CDS) for European sovereigns and financials continue to underperform, with Ireland and Portugal driving the trend, according to Fitch Solutions in its latest Risk and Performance Monitor.

While overall market spreads tightened 3% overall, European sovereigns widened 3.7%, with
Ireland (24%) and Portugal (22%) leading the underperformers. 'Materially wider CDS is suggesting mounting concern over Ireland and Portugal 's fiscal stability, with CDS on Ireland hitting an all-time high,' said Author and Managing Director Jonathan Di Giambattista.

The trend of widening CDS was also evident in Irish and Portuguese financial institutions, which came out 20% and 18%, respectively. 'Markets tend to systematically price in sovereign risk for financials, a trend that has been in place since the onset of the credit crisis,' said Di Giambattista.

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