Update: Old Man Europe's Credit default swap yields increasing

Yesterday we reported on the yield spreads between the PIGS and Germany.  Today, we are having a look at the CDS spreads. 

To see how risky and sick Europe is you only have to look at what the markets say.  Despite all the promises from the IMF and Europe that Greece is restructuring and going through austerity, markets don't buy it. They think Greece will default. 

The cost to insure Greece bonds is still 944 bps over a "risk free" security.  Ireland is the next most risky country with 515 bps.  Portugal, Spain and Italy are progressively less risky.

Via Bloomberg

Credit Default Swap Spreads

Greece:  944
Ireland: 515
Portugal: 426
Spain: 259
Italy: 188


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