by Gregory White
January 21, 2011
European sovereign CDS prices are lower this morning after the head of the European Financial Stability Facility said Greece's debt will not need to be restructured.
Whether you believe him or not, the market does, and CDS prices have dipped on the news.
But just how important were those comments? Well, this new chart from Societe Generale puts it in perspective. For Europe's banking sector, all that matters now is that sovereign CDS price. In fact, the the price on sovereign CDS is reflected in the CDS of banks from each country.