While everyone is transfixed on the impending “default” by the Greeks and problems of the Portuguese, has anyone noticed that Credit Default Swaps on the PIGS government bonds (and Greece in particular) are lower than were they were trading at on the 1st of February? Could we go so far as to say that the European CDS market for sovereign debt is suggesting that the EU Debt Storm (call it what you will) is passing?
And what if the Credit Default Swaps on the Greek and Portuguese debt continue to move down? Well we can only think that the worst position to have in the world would be shorts on the Euro!
