Linking Sovereign Risk to Corporate Credit Spreads in Europe
Author: Rebecca Wilder · September 24th, 2011 · Comments (3)
Financial firms in Europe and the US are hitting crisis mode, as illustrated by relative borrowing costs, spreads, to comparable government bonds (see financial spreads chart to left and click to enlarge). World policy leaders anxiously await – and some promise to deliver – a solution to the euro area sovereign debt crisis at the IMF annual meetings. Tim Geithner urges policy makers in Europe to end the “threat of cascading default, bank runs and catastrophic risk”. We really are in crisis mode.
via EconoMonitor : The Wilder View » Linking Sovereign Risk to Corporate Credit Spreads in Europe.