Over at Bespoke Premium, we provide members with a regular look at financial default risk through our Bank and Broker CDS Index. The index measures credit default swap (CDS) prices for global financial firms on a cap weighted basis. Below is a chart of our index that shows the huge spike in default risk that occurred during the peak of the financial crisis in late 2008 and early 2009. As things have settled down, default risk has now moved well below the levels it was at just before the Lehman bankruptcy. Our CDS index is currently at its lowest level since June 23rd, 2008, and it's down a whopping 67% from its all-time high.
Sign up for Bespoke Premium to get access to our Bank and Broker CDS Index on a regular basis.
Comments