Metamorphosis of the crisis into sovereign debt crisis:  Just when the global economy was reverting to the normalcy, another crisis in the nature of sovereign debt crisis surfaced. The growing debts of many European sovereigns caused sustainability concerns forcing investors to withdraw from these markets which led to significant escalation of their CDS spreads.
The crisis which emerged in late 2009 has engulfed the entire Eurozone by end 2011. While only Greek bonds had CDS spreads higher than 200 bps in April 2010, by Jan 2012, bonds of all countries except Germany, Finland and the Netherlands had CDS spreads higher than 200 bps.