Friday, September 2, 2011

Widening Euro Credit Spreads (Again)

On the back of failing talks between Greece and EU/IMF officials (and maybe even today's weak US job report), credit spreads are blowing out again in Europe. Greek CDS spreads are once again at records, and Italian and French bonds are also getting hammered.

While it is easy to get distracted by talk of QE3 and the potential for new stimulus packages here in the US, I continue to view Europe as ground zero for synchronized global market probs.

Still adding short side hedge in order to manage risk.

position in SPX

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