Nothing more wets the contrarian investors’ appetite then when these 3 little letters start making their rounds around the financial sphere. What three letters you ask? “CDS”, Some of you novices might not be old enough to remember the damage that these things did a decade ago, but I love a good rehypothecated insurance product, don’t you? What risk is there any more, markets just rise and rise and its cherry Kool-Aid stained T-Shirts for everyone right? Yea more like blood stained in disguise, masked under trillions of global central banks interest rate fixing, bond buying, #QE4EVR regimes. Anyhow lets just take a look at Italian 5Y CDS shall we:
