Hungary debt insurance costs drop to lowest level since Jan
Default insurance costs on Hungary's sovereign debt on Wednesday dropped to the lowest level since the end of January as the forint strengthened. According to S&P Capital IQ's CMA, a major CDS market data monitor in London, Hungary's benchmark five-year credit default swaps (CDS) traded around 286bp late on Wednesday compared to spreads of around 395bp early in April. A CDS contract valued at 286bp means that the cost to insure every EUR 10 million worth of sovereign FX bond exposure against default is now around EUR 286,000 a year for the benchmark five-year maturity.
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