While default risk has dropped dramatically for the financial companies listed below, it's still interesting to see how the firms compare with each other on the CDS front. Below we highlight current credit default swap prices for 24 financial firms across the globe. These prices represent the cost per year to insure $10,000 worth of debt for 5 years. As shown, default risk is the highest for Morgan Stanley, followed by Goldman Sachs, American Express, UBS, and Citigroup. The premium against default for JP Morgan is the lowest among US financial firms, with Wachovia, Wells Fargo, and Bank of America not far behind. BNP Paribas and Credit Agricole have the lowest default risk of the 24 financial firms shown.
ya, AXP/consumer finance concerns me as the next shoe to drop. lots of small businesses were started in the past decade with easy lending and personal home equity loans.
time will tell.
Posted by: ymmv | January 09, 2009 at 03:58 PM
Is it possible to get the 1yr CDS rates?
They will be higher and much more interesting!
Posted by: vk | January 09, 2009 at 06:18 PM
Do you have the CDS rates for Canadian banks? Thank you.
Posted by: svg | January 09, 2009 at 11:22 PM
So if i'm reading this chart right;M.S. could fail if this "trusting feel good get over the pass shafting" (unloading crap to E.U.I.Banks an pension funds)turns Neg. and TED starts to move up......
Posted by: dj | January 10, 2009 at 10:42 AM
It might well be worth Googling:-
"Chris Martenson"
and completing the
"Crash Course"
After all, some answers are best expressed by the experts...
Posted by: Paul | January 11, 2009 at 11:07 AM
Sorry Paul above,i'm not "aleft lib hate usa", you see alot of dinks like Martenson coming out of the wood work the last few yrs. Look it's the 70's just the numbers are bigger an the gov. are just playing games with Taxpayers money...but life goes on
Posted by: dj | January 11, 2009 at 08:47 PM