Spreads on European sovereign CDS widen because of deficit concern

03/19/2010 | Risk.net (subscription required)

The European Commission's comment that certain member states have failed to adequately address their fiscal deficit was followed by a widening of spreads on European sovereign credit default swaps. Greek CDS spreads saw the largest movement. German Chancellor Angela Merkel's statement that Greece should not rely on a rescue from the EU was seen as a contributor to the situation. Meanwhile, spreads on other sovereign swaps, including those on Italy, the U.K. and France, also widened.

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