What the markets think… CDS

13th February, 2009

Credit Default Swaps (CDS) are financial tools that measure risk. The spread on these CDS reflect the risk that the market attributes to that risk actually happening. This spread for Irish debt increased yesterday
afternoon and this morning. This means that Irish tax payers will pay more for the money they borrow in the international bond markets. This is probably because of the international view of the health and probity of our banks.

That is why I call again for criminal investigation of certain banks. This is happening in the US. Why not here?