CDS price on Danske Bank is historical high

[Italkcash Newsfeed]

Danske Bank the third largest bank corporation in nordic european region has twice the risk of bankruptcy than Nordea and Svenska Handelsbanken. The price on the CDS, Credit Default Swap (originally used as a form of insurance against bad debts, but today used as a tool for financial speculation) has reach a historical high figurer. Danske Bank has shown to be one of the big looses in the north european credit crises. Th price on Danske Bank shares is today 1/3 of the price 18 months ago.

The risk of a bankruptcy within the next 5 years is 16%. I high number for a bank of this size.

The problem om gets bigger by the big internal mess that Danske Bank is in. Corporate customers are seeking alternativ banks because of the lack of search and slow processing time for new account opening.

Where there is smoke there is fire. Seek new territories.


The Doc