The cost of insuring Hungarian state debt rose on markets in London on Thursday to highs not seen since the depths of the crisis as risk aversion grew on global markets.
CMA DataVision said that the benchmark 5-year mid-spread of Hungary’s credit default swaps contracts (CDS) was around 525bp in trade in London on Thursday, up from 487.7bp late Wednesday.
Hungary’s CDS mid-spread was around 460bp one week ago and around 255bp at the beginning of the summer.
A CDS contract valued at 525bp means that the cost to insure every €10m worth of bond exposure against default is €525,000 a year for the benchmark five-year horizon.
Hungary’s CDS mid-spread peaked at 630bp in March 2009.
Producing journalism that is worthy of the name is a costly business. For over 30 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.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.
