Chart: Bank CDS Watch - Stress Signs?

October 15, 2018

Here's an interesting chart from our Global Cross Asset Market Monitor - it's one of a series of unique and proprietary indicators that we use to help investors stay on top of the key trends, risks and opportunities across global markets.  The chart shows the average 5-year CDS (Credit Default Swap) pricing for US vs European banks.  Basically it is a market-based measure of credit risk pricing for banks, and the key reason we watch this is to try and get a lead on potential issues in the banking sector (may be presaged by a steady rise in CDS pricing, or a sudden spike).

 

At this point risk looks well contained in the US banking sector, with risk pricing suppressed around the lows.  European banks however have seen a steady widening and divergence from US banks, as lingering political risk (Brexit, Italian budget, German elections) weighs on the outlook, and softening economic momentum dampens risk appetites.  In this sense it is thus something we're watching closely as the outlook in Europe evolves.

 

 

 

Looking for deeper insights?  Try taking a free trial of our institutional research service 

Please reload

Follow us for updates:
  • Twitter Social Icon
  • LinkedIn Social Icon
Subscribe:

Subscribe to the Top 5 Charts of the Week so you can get:

--Exclusive Charts

--Actionable Insights

--A Flow of New Ideas

Search By Tags
Archive
Please reload

Important Notice

We offer exclusive insights for institutional clients with our suite of multi-asset investment research reports, personalized service, & global perspective.

Take a trial today...

Become a Client

 

 

 

 

Important Information for Visitors

Privacy Policy    Disclaimer   Contact Us

Home

© Copyright 2016 Topdown Charts Limited