Bank funding costs launch

A crisis is coming or I’m no judge. Yesterday CBA CDS launched 5% to a new post-European crisis high of 101.42bps:


And look at that rock solid trend! At some point I still expect some kind of commodity debt accident in global markets to send this index ballistic. It’s kind of remarkable to note that CDS prices are higher now than they were in mid-2008.

What a shame we just did this to ourselves:


Ah well, Glenny will retire in September.


David Llewellyn-Smith
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