Bank funding costs launch

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

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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:

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.