Posted on: 5th October 2011 in Finance
Here are a couple of interesting charts taken from Bespoke: Trouble in Financial Land. The first shows the percentage change in credit default swap (CDS) prices for major banks. A CDS is like an insurance policy. It obliges the seller of the CDS to compensate the buyer in the event of loan default. High CDS prices, therefore, represent a higher probability that the underlying company, banks, in this case, will default on their debt obligations. It’s interesting that so far this year the price of insuring against default has risen the most for two U.S. banks, Morgan Stanley and Goldman Sachs. With the trouble Europe’s banks are in you might have expected them to be top of the list. The second chart shows the percentage decline in banks stocks in 2011. Clearly, it’s the banks that have taken the brunt of the market falls so far in 2011.
We have 18 offices across the globe and we manage over $2billion for our 20,000+ clients
Get started
The foreign exchange (forex) market is a fascinating world where currencies from across the globe are traded. Whether you’re planning a trip abroad, running a business, or considering an investment...
Read more
Inflation—the rise in prices over time—is one of the most important factors to consider when planning your financial future. While it may seem like a background economic buzzword, inflation has...
Read more
Planning for retirement can feel overwhelming, but it doesn’t have to be. By breaking the process into manageable steps, you can create a secure and comfortable future for yourself. This...
Read more
Investing can feel like stepping into uncharted territory for many first-timers. Questions like, “Where do I start?” or “What if I lose all my money?” are common. But here’s the...
Read more
