Hungary default insurance cost drops to fresh year-low
The cost of insuring Hungary's sovereign debt against default fell under 300bp on markets in London.
The cost of insuring Hungary's sovereign debt against default fell under 300bp on markets in London on Friday, reaching a new low for the year as optimism was boosted by the government's fiscal adjustment programme unveiled a week earlier and market expectations for an agreement with the IMF/EU. According to Markit, a big CDS market data monitor in London, Hungary's five-year credit default swaps (CDS) fell 23bp to around 298bp on Friday, down 70bp from a week earlier and 85bp from a month earlier. A CDS contract valued at 298bp means that the cost to insure every EUR 10m worth of bond exposure against default is €298,000 a year for the benchmark five-year horizon. Hungary's CDS spreads were over 750bp in the first week of this year.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.