by Calculated Risk on 5/09/2011 09:15:00 AM

From MarketWatch: Greek CDS spreads widen after downgrade

Standard & Poor's lowered its credit rating on Greece to B from BB-minus. The spread on five-year Greek credit default swaps, or CDS, widened further to 1,375 basis points from around 1,360 basis points earlier in the day ...

I've heard from an excellent source that there are EMU people working on the details of what a restructuring would look like - as a contingency plan - but nothing is imminent. Some sort of restructuring seems priced in with the yield on Greece ten year bonds is at 15.6% today and the two year yield at 25.2%.