Credit default swaps protecting the debt of Greece rose to a new record and the second day (so far) trading above the 10% level. Greek CDS had previously hit successive highs of 1127 bps yesterday and 970 bps on Wednesday according to CMA. The current 1131 bps level implies a default probability of 69% in 5 years.
The CDS move higher may be more technical than fundamental given that Greek’s 10-year cash bond spread to German bunds is somewhere between 7.80% and 7.89% which is lower than yesterday’s 7.91%.
The terrorist attack in Athens today does not appear to have caused too much of an impact in early trading so far.
Disclosure: long all stocks