Golden Arches Safer than Uncle Sam?!

Date September 26, 2008

Word on the street is that the credit risk of the Golden Arches are better than Uncle Sam.

arches VS. sam

5 Year Credit Default Swaps on McDonald’s Corp are trading at 24 to 29bp while US Credit Default Swaps are trading 30bp. This means that it is more expensive to buy protection against a default of the US government than a bankruptcy of Mickey D.


Another interesting fact of the day: Washington Mutual got seized by the US government and sold to JPMorgan on its 119th birthday (Thursday)

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