The cost of credit-default swaps has risen to record highs as wider economic conditions worsen, according to The Financial Times.
“There are a lot of worries over the economy, and some people want to take less risk,” said Willem Sels, head of credit strategy at Dresdner Kleinwort. “But liquidity is also poor as we come to the year-end with fewer bankers or funds wanting to invest … It is certainly not the time yet to see a sustained rally. I think there is too much uncertainty for that.”