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Bank CDS Watch: Signs Of Stress?

Published 10/16/2018, 12:09 AM
Updated 07/09/2023, 06:31 AM

Here's an interesting chart from our Global Cross Asset Market Monitor - it's one of a series of unique and proprietary indicators that we use to help investors stay on top of the key trends, risks and opportunities across global markets. The chart shows the average 5-year CDS (Credit Default Swap) pricing for US vs European banks. Basically it is a market-based measure of credit risk pricing for banks, and the key reason we watch this is to try and get a lead on potential issues in the banking sector (may be presaged by a steady rise in CDS pricing, or a sudden spike).

US vs EU Bank CDS

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