Jun. 29 at 7:10 AM
$GOOGL -?The graph in the file "image.png" depicts the phases of the global financial crisis as reflected in banks' CDS (Credit Default Swap) spreads and the three-month Libor-OIS spread.
The following is an analysis of the information presented in the graph:
Graph content: The graph shows the fluctuations in the CDS spreads of leading banks (JPMorgan Chase, Citigroup, Wells Fargo, Bank of America, Morgan Stanley and Goldman Sachs) and the Libor-OIS spread between 2007 and 2010.
Phases of the crisis: The period is divided into three main phases highlighted in gray:
Increasing Stress: The period in early 2007 when spreads began to rise.
Early Escalation: The continued rise in spreads in early 2008.
Panic and Resolution: The peak of the crisis around late 2008 and early 2009, characterized by exceptionally high volatility, followed by a gradual decline.
