Agora Financial's Rude Awakening notes that the U.S. Government is now considered less credit-worthy than Pepsi or IBM by the credit default swap market:
[Click here for full image.]As the nearby chart indicates, the price of insuring Treasury debt against default now costs more than the price of insuring the debt of almost any AA or A+ rated company in the country. In other words, the Treasury is not quite as AAA as it should be, according to the buyers of credit default swaps.
[Click here for full image.]
But fear not, CDS on Treasury debt remains well below the price of comparable CDS on Bulgarian, Argentinean and Latvian debt.***
Of course, this might have a little to do with it:
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