Great Graphic: US and Japan Five-Year Credit Default Swaps

marctomarket.com / by Marc Chandler / FEBRUARY 20, 2017

This Great Graphic was created on Bloomberg and depicts Japan and US 5-year credit default swap indicative pricing.  Japan’s  5-year CDS is denominated in dollars and is represented by the white line.  The US CDS is the white line and is priced in euros.

As can be seen by looking closely at the recent performance, the US CDS has risen through Japan’s.  This does not appear to have happened since throes of the Great Financial Crisis.

Some observers want to blame the unorthodox policies of the Trump Administration, but this does not seem right.  For the first eight months of last year, the 5-year US CDS traded between 18 bp and about 24 bp.  It appears to have jumped to a new and higher range in early August when it rose to almost 32 bp.  Since then, it has been mostly in a 25-30 bp range.  It finished last week near 27.2 bp, which is smack on the 50- and 100-day moving averages.

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Read more ... source: The Bitcoin Channel

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