{"id":236270,"date":"2010-01-27T04:55:00","date_gmt":"2010-01-27T09:55:00","guid":{"rendered":"http:\/\/www.businessinsider.com\/traders-aggressively-buying-credit-default-swaps-against-sovereign-debt-2010-1"},"modified":"2010-01-27T04:55:00","modified_gmt":"2010-01-27T09:55:00","slug":"traders-aggressively-buying-credit-default-swap-protection-against-sovereign-debt-defaults","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/236270","title":{"rendered":"Traders Aggressively Buying Credit Default Swap Protection Against Sovereign Debt Defaults"},"content":{"rendered":"<p><img decoding=\"async\" class=\"float_right\" src=\"http:\/\/static.businessinsider.com\/image\/4b1ebf8100000000000c2eb7-400-\/greece-greek-athens-protest-flag-burn.jpg\" border=\"0\" alt=\"greece greek athens protest flag burn\" width=\"400\" \/><\/p>\n<p><div style=\"float: left; padding: 15px 15px 15px 0;\">\n<script type=\"text\/javascript\">\/\/ <![CDATA[\ntweetmeme_source = 'moneygame'; tweetmeme_service = 'bit.ly';\n\/\/ ]]><\/script><br \/>\n<script src=\"http:\/\/tweetmeme.com\/i\/scripts\/button.js\" type=\"text\/javascript\"><\/script>\n<\/div>\n<p>Credit default swap (CDS) protection buying against sovereign debt default has spiked to five times the level of similar protection bought for corporate bonds, as the potential for a wave of sovereign debt defaults intensifies.<\/p>\n<p>CDS notional amounts for 54 governments around the world jumped 14.2% since October 9th 2009 according to Depository Trust &amp; Clearing Corp.<\/p>\n<p>Outstanding CDS amounts for all other kinds of debt only rose 2.6% over the same period.<\/p>\n<p>Demand for default protection has been particularly strong for Europe&#8217;s fiscally disastrous nations:<\/p>\n<p style=\"padding-left: 30px;\"><a href=\"http:\/\/www.bloomberg.com\/apps\/news?pid=20601087&amp;sid=agMzklasMuzE&amp;pos=4\">Bloomberg:<\/a>&nbsp; European countries led the jump, with the amount of protection on Portugal rising 23 percent, Spain 16 percent and Greece 5 percent.<\/p>\n<p style=\"padding-left: 30px;\">&#8230;<\/p>\n<p style=\"padding-left: 30px;\">The cost to protect against a default by Greece has more than doubled to 325 basis points since Sept. 30 as the government struggles to reduce a budget deficit that&rsquo;s 12.7 percent of gross domestic product, CMA DataVision prices show.<\/p>\n<p style=\"padding-left: 30px;\">&#8230;<\/p>\n<p style=\"padding-left: 30px;\">Bets on Italy have jumped 13 percent to $25.4 billion, while the net amount of swaps on Spain climbed 16 percent to $15.2 billion.<\/p>\n<p style=\"padding-left: 30px;\"><a href=\"http:\/\/www.bloomberg.com\/apps\/news?pid=20601087&amp;sid=agMzklasMuzE&amp;pos=4\">Read more here &gt;<\/a><\/p>\n<p><a href=\"http:\/\/www.businessinsider.com\/traders-aggressively-buying-credit-default-swaps-against-sovereign-debt-2010-1#comments\">Join the conversation about this story &#187;<\/a><\/p>\n<p><b>See Also:<\/b><\/p>\n<ul>\n<li><a href=\"http:\/\/www.businessinsider.com\/pimcos-ring-of-fire-chart-shows-the-true-state-of-sovereign-debt-2010-1\">PIMCO: The US Falls Into The Sovereign Debt Ring Of Fire<\/a><\/li>\n<li><a href=\"http:\/\/www.businessinsider.com\/the-uk-is-about-to-crash-along-with-the-sovereign-default-piigs-2010-1\">The U.K. Is About To Crash Along With The Sovereign-Default PIIGS<\/a><\/li>\n<li><a href=\"http:\/\/www.businessinsider.com\/argentina-leads-the-cds-spread-charts-with-ukraine-and-venezuela-right-behind-it-2010-1\">Reminder: The Worst Sovereign Isn&#8217;t Greece, Iceland Or Ireland<\/a><\/li>\n<\/ul>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~r\/TheMoneyGame\/~4\/tA1awSTex0g\" height=\"1\" width=\"1\"\/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Credit default swap (CDS) protection buying against sovereign debt default has spiked to five times the level of similar protection bought for corporate bonds, as the potential for a wave of sovereign debt defaults intensifies. CDS notional amounts for 54 governments around the world jumped 14.2% since October 9th 2009 according to Depository Trust &amp; [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-236270","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/236270","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=236270"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/236270\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=236270"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=236270"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=236270"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}