CDS and why moves are greater than underlying bond market today

Here are some updated CDS levels in the troubled European countries, Portugal 225 +30, Italy 150 +20, Greece 410 +22, Spain 170 +19, and Ireland 170 +10. The action today in their individual bond markets though are more tame. The sharp CDS moves in contrast are reflective of counterparty participants around the world, whether banks, other financial institutions or investors, scrambling for hedges and protection.

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