Saudi CDS Soars To 6 Year Highs

This weekend we saw an important action in the downgrade of Saudi Arabia, highlighting just how far the EM crisis has carried. As Ice Farm Capital’s Michael Green notes, in response, Saudi CDS continues to climb, reaching its highest since 2009 (amid both default risk and devaluation concerns).

Now clearly Saudi’s distress is largely a byproduct of oil weakness. I create an ‘adjusted’ Saudi CDS by netting out Germany and as you would expect this fairly closely tracks oil prices:

This post was published at Zero Hedge on 11/02/2015.