Reuters
U.S. Treasury CDS Hit Record Wide Levels
By Richard Leong and George Matlock in London
Mon Nov 24, 2008 11:21am EST
NEW YORK, Nov 24 - The spread or risk premium on 10-year U.S. Treasury credit default swaps hit record wide levels on Monday, prompted by worries about how the cost of rescuing banks and carmakers would affect U.S. creditworthiness, CMA DataVision said.
As the global financial crisis worsened in recent weeks, traders increased their bets on the bigger toll of the U.S. government's array of programs to help these ailing industries.
Ten-year U.S. Treasury CDS edged out to 49.8 basis points from 49.3 basis points at Friday's close, according to the credit data company.
Five-year Treasury CDS grew to 43.5 basis points versus 43.0 basis points late Friday, it said.
The risk premiums have nearly doubled from levels seen two months ago after the collapse of Lehman Brothers.
Prior to the financial crisis, default risk premiums on U.S. government debt had been running in the low-to-mid single digits.
Joy is the experience of knowing that you are unconditionally loved, and that nothing—sickness, failure, emotional distress, oppression, war, or death—can take that love away. Joy is not the same as happiness. Joy does not simply happen to us. We have to choose joy and keep choosing it every day. We can be unhappy about many things, but joy can still be there because it comes from the knowledge of God’s love for us. Nothing, not even death, can take God away from us.
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