Everyone was panicking back in April / May about the state of the Icelandic banks, the inability of the Icelandic National Bank to support them if they got into trouble, and the risks of a run on the currency.
Those worries seemed to go away after the Icelandic banks announced what seemed like solid results. But check out the chart of EUR-ISK below — it surged today to 128.14 (up 4.35 on the day).
The Credit Default Swaps on the Icelandic banks have been rising rapidly again as well – Kaupthing at 623bps (up from 400bps at the end of April, although down from the peak of 1100bps in March), Glitnir at 593bps and Landsbanki at 356bps.
Posted by quonga 