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Oct 3, 2011

Credit Default Swaps for PIIGS

The online newspaper Linkiesta from Italy posted this graph with the Credit Default Swap prices for the PIIGS-countries. Credit default swaps are securities which insure against default of the underlying asset. In this case the underlying assets are the government debts of the countries. So when you own government debt of a country you can insure against default by buying a Credit default swap on this government debt.

The fact that the Credit default swap prices for the PIIGS-countries have risen lately show that the demand for insurance against a default has grown as well.

Where Grecia = Greece, Irlanda = Ireland, Portogallo = Portugal, Spagna = Spain and Italia = Italy.

The graph starts January first 2010 until 22 September 2011.

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