Banks In Trouble. Again

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.

Ready to chat with
a specialist?

Get started

You may also be interested in

Jeremy Hunt unveils the 2023 Spring Budget

Jeremy Hunt prepares to deliver his first official Budget as chancellor. We look at some of the key points from the Spring Budget 2023.

Read more
Portugal golden visa changes 2023

Is it adeus for the Portugal Golden Visa?

Following the statement by the Portuguese government, we go over everything we know so far about the proposed changes to the Portugal Golden Visa in 2023.

Read more

New Year’s resolutions for 2023: Achieve your financial goals!

Achieving your financial goals should be included in new year's resolutions. Holborn offers a free personal financial review to all of you!

Read more
2022 year in review

2022: Financial year in review

2022 is almost a wrap, and it's been an eventful year. Here, we look back on 2022, what it has taught us and how you can prepare financially for 2023.

Read more