Cost of insuring Hungarian debt climbs to 1.5-year high


The cost of insuring Hungarian state debt rose on markets in London on Friday to levels not seen since the spring of 2010.

CMA DataVision said that the benchmark 5-year mid-spread of Hungary's credit default swaps contracts (CDS) was a little over 400bp in trade in London on Friday, up from 370.5bp late Thursday.

A CDS contract valued at 400bp means that the cost to insure every €10 million worth of bond exposure against default is €400,000 a year for the benchmark five-year horizon.

One month earlier, Hungary's CDS mid-spread was about 265bp.

In a front-page story published on Friday morning, broadsheet Népszabadság said Hungary's indebted local councils need a three-year moratorium on principal repayments on their foreign currency-denominated debt because of the firming Swiss franc, citing the head of local council alliance TOOSZ.

On Wednesday, the mid-spread of Hungary's CDS contracts also rose after one of the country's other local council associations said it was asking the prime minister to intervene to get a one-year moratorium on repayment of principal on foreign currency-denominated debt.


European e-commerce soars during pandemic - study Analysis

European e-commerce soars during pandemic - study

Lawmakers approve 2022 budget Parliament

Lawmakers approve 2022 budget

Duncan Graham reelected as BCCH president Appointments

Duncan Graham reelected as BCCH president

Budapest launches revamped coupon card for visitors City

Budapest launches revamped coupon card for visitors


Producing journalism that is worthy of the name is a costly business. For 27 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.