Key indicators of credit stress have reached the danger levels seen before the Lehman Brothers failure three years ago, with Markit's iTraxx Crossover index – or "fear gauge" – of corporate bonds surging 56 basis points to 857 on Thursday....
The yield spread between Italian 10-year bonds and Bunds reached a fresh record of 408 basis points before the European Central Bank (ECB) intervened in late trading. It is near the level at which LCH.Clearnet raises margin requirements, the trigger that forced Greece, Portugal and Ireland to request bail-outs.
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Filed under: * Culture-Watch Globalization * Economics, Politics Economy Credit Markets Currency Markets Euro European Central Bank G20 The Banking System/Sector The Credit Freeze Crisis of Fall 2008/The Recession of 2007-- * International News & Commentary England / UK --Ireland Europe --European Sovereign Debt Crisis of 2010 France Germany Greece Italy Portugal
Posted September 22, 2011 at 8:28 pm
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