Euro Sovereign Debt CDS Risk
I was talking to a friend today about where we think most of the CDS exposure to Euro debt lies. Afterwards, I came across this article from Bloomberg. It's a good read to pass along.
"Guarantees provided by U.S. lenders on government, bank and corporate debt in those countries [Greece, Portugal, Ireland, Spain and Italy] rose by $80.7 billion to $518 billion, according to the Bank for International Settlements. Almost all of those are credit-default swaps, said two people familiar with the numbers, accounting for two-thirds of the total related to the five nations, BIS data show."
The article also goes through Dexia and AIG. Thoughts?