* * * * * J B K * * * * *
San Francisco
The cost of five-year swaps on Greek debt was 455.4 basis points as of 9:05 a.m. in London today, according to CMA DataVision prices, compared with a record intraday high of 470 on April 8, and up from 438.2 on April 16. German swaps were at 35.8 basis points, the highest level since March 1. Contracts on Portugal were at 203.1 bases points from 195.8 on April 16.
"Greece is the tip of the iceberg," said Gargour. "The more people scratch beneath the surface, the more they'll find countries in the same situation as Greece, which means the more they'll have to tap on the resources of Germany and their resources are not limitless. You're migrating payments to the riskier countries from the stable ones and reducing the stable ones' credit quality."
http://www.bloomberg.com/apps/news?pid=20601087&sid=ay4Ie.b3WXig&pos=3
