Self-referencing CDS risk?

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Sovereigns have replaced banks at the epicentre of the financial crisis. Anxiety about the level of debt racked up by some eurozone sovereigns before and during the crisis has caused a huge rise in the cost of funding for some countries – and led to fears of contagion throughout the region. A €750 billion emergency loan package agreed by the European Union and International Monetary Fund on May 9 initially seemed to restore confidence, but there are continued concerns about the health of

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