Argentina Credit Default Swap Spread Blows Out

The Credit Default Swap is back in the headlines.

Argentina's probability of default, as of Monday June 23, is boarding on 67 percent given the $3.7 million down + $500K annually required to protect against $10 million in Argentinian debt for a five-year period, according to Bloomberg. Argentina has declared it will not make a June 30 interest payment on obligations tied to creditors, who held out back in 2001 by refusing to accept Argentina's restructured debt offerings.

The U.S. Supreme Court has now ruled Argentina's creditors have the right to seek the nation's hidden assets from around the world as payment and this appears to be causing the CDS blowout.