After underwhelming in 2017, political CDS risk still lingers

This year was widely touted by many – including yours truly – as the year of political risk. As we now know, it didn’t turn out that way. Emmanuel Macron fought off the challenge of the National Front, Mark Rutte was re-elected as Dutch Prime Minister and Italy didn’t hold yet another general election. CDS spreads duly recovered and look set to end 2017 close to multi-year tights.