//“And Now For Something Completely Different”

“And Now For Something Completely Different”

With everyone focusing on China, oil and the dollar, here is BMO’s Mark Steele taking a loot at something few are concerned about so far. That will change shortly.

And Now For Something Completely Different

Typically, when banks look as awful as they do, and believe us they do look awful, we focus on the credit default swaps on the FSA’s too-interconnected-to fail list. But your portfolio is broader than that, so today we will expand to show banks with a CDS over 100bps, and we sorted it by its degree of short term freakedoutity.

Something Different Trends on Bans CDS

Leading the pack is the Italian SIFI (Figure 2, and looking forward to hearing if you are still taking the stance of the Buba on Thursday Mr. Draghi), followed by another Italian, another Italian, and another Italian.

A German SIFI then…eventually you get to Morgan Stanly and Citibank.

Fig 2 something different

So let’s just say that if you are focused on domestic North American issues…you are missing the point.

Source: Zero Hedge