US Default Risk Hits 8-Month Highs
While still relatively low, USA sovereign CDS spreads have risen to 8-month highs, surging off early March lows. The reasons are likely numerous though we suggest the 4 surges in the last 3 months appear to line up with notable 'events'...
While correlation does not imply causation, it does waggle its eyebrows suggestively and gesture furtively while mouthing "look over here."
Note: Sovereign CDS represent a combination both default and devaluation risks.