Naked CDS trading is the target of Greek officials as they fan out across Washington, appealing for support from the US. The finance minister also says Greece cannot close it s budget gap with interest rate spreads of nearly 300 bp over European benchmark bonds, a valid point but not one that can be easily dealt with without some sort of guarantee from a higher-rated entity.
Here’s a chart to give you some perspective on Greek borrowing rates over the last few years. 4 years ago they were borrowing (and borrowing and borrowing..) at about 25 bp more than Germany. Lately spreads have come down below 300 bp after trading as high as 400 bp at the height of the crisis.
