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Not Europe Again…



August 17, 2010 – Comments (0)

The Pragramatic Capitalist has a new post up discussing European CDS spreads.

I put up a post yesterday and this weekend on my other blog along these same lines, discussing Soverign Default Risks. You really should read the Soverign Debt series on Calculated Risk, it is excellent


I will assume that everyone has read "some investor guy"'s ongoing series regarding Sovereign Debt Risks on Calculated Risk

... if you haven't .... then you should.

This is an excellent and very accessible series that talks specifically about Sovereign Debt and Sovereign Default risks. If you want to know why I harp on this subject so much, especially in this weekends post: Where we are: The Long Count and some thoughts, this is one of your answers. Seriously if you haven't read it, then you owe it to yourself to do so.

For your convenience, here are links to the current series

-- Part 1: How Large is the Outstanding Value of Sovereign Bonds?
-- Part 2: How Often Have Sovereign Countries Defaulted in the Past?
-- Part 2B: More on Historic Sovereign Default Research
-- Part 3: What are the Market Estimates of the Probabilities of Default?
-- Part 4: What are Total Estimated Losses on Sovereign Bonds Due to Default?
-- Part 5A: What Happens If Things Go Really Badly? $15 Trillion of Sovereign Debt in Default
-- Part 5B: What Happens If Things Go Really Badly? More Things Can Go Badly: Credit Default Swaps, Interest Swaps and Options, Foreign Exchange
-- Part 5C: Some Policy Options, Good and Bad
-- Part 5D: What Happens if Things Go Really Badly? European Banks


17 August 2010 by TPC

The usual suspects don’t appear to be healing in Europe.  CDS spreads continue to widen throughout much of Europe despite the Herculean measures taken on by the ECB.   As we mentioned last week, things appear to be getting worse in many countries across the region….Will the markets continue to sit by idly as it appears increasingly obvious that the austerity measures are not the quick fix everyone assumed them to be?  Or is this just a shot across the bow?

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