Exactly one year ago, an outbreak of flu in Mexico led to fears of a global pandemic. ‘Swine Flu’ did indeed spread around the world, however for most countries it had only a limited effect on economic output.
We are now facing something that is likely to prove much more serious. This time the epidemic can be traced to Greece, and contagion is rapidly spreading among the PIGS. At the beginni… Read the article
Happy New Year.
Over the past couple of weeks, the cost of buying protection to insure against a default by the UK government has risen to exceed the cost of insuring a basket of European investment grade companies. The chart shows that 5 year Credit Default Swaps (CDS) for the UK sovereign are currently at 83bps per year, compared with 72 bps for the investment grade companies, which are all … Read the article