Just how wide can they go? During a minor liquidity wobble two years ago, credit default swaps on one of Iceland’s big banks pushed through 100 basis points, causing all three to rein back asset growth and chase deposits. At the end of last week Glitnir moved more than that in a day, breaking 1,000bps, with Kaupthing and Landsbanki not far behind. Kazakh banks now command a lower risk premium.

The important question is whether CDS spreads this wide matter. By tapping private placements, Kaupthing – the biggest – says it has been able to fund itself at prices well below the level derivatives are indicating. The apparent panic is not mirrored in equity markets, where all three banks are on bullish price/earnings ratios.