Are you sure?

Hungary default insurance costs reach five-month low on ECB LTRO

Default insurance costs on Hungary's sovereign debt reached a low not seen since September of last year in markets in London on Friday, falling on optimism after the European Central Bank's long-term refinancing operation (LTRO).

According to CMA DataVision, a major CDS market data monitor in London, Hungary's five-year credit default swaps (CDS) traded around 500bp Friday, falling from 507.0bp late Thursday.


Hungary's five-year CDSs climbed over 525bp at the end of September last year. 


A CDS contract valued at 500bp means that the cost to insure every €10 million worth of bond exposure against default is €500,000 a year for the benchmark five-year horizon.