CDS market: Risk concerns mounting

Is anyone really afraid of another Bear Stearns? I don't think we'll get another rumor-driven failure. The Fed's new facilities make that much more unlikely, though the rumors can really cause problems for firms. There were lots of rumors about Lehman Brothers
a while back; some people were really nervous about its standing as a counterparty. While another Bear Stearns-like insta-implosion is not likely, there can still be failures. At some point, if earnings sour badly, capital is all too scarce and ratings agencies are forced to act, a bank could be forced into chapter 11. CDS spreads, as measured by Credit Derivatives Research, have actually been ticking up recently, reports Financial News Online. Fortunately, they are no where near the levels they were at in February, when the pyrotechnics were really hot. Stay tuned, though. We could he heading into another rough patch.

For more:
- here's the Financial News Online article

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