Friday, November 27, 2009

Cost of Dubai Debt Insurance Soars

The cost of insuring Dubai's sovereign debt against default rose sharply for the third straight day Friday as investors continued to flee Dubai assets in the wake of Dubai World's debt-restructuring announcement.

The spread on five-year Dubai credit default swaps soared to 708.96 basis points in early afternoon activity, up 167.75 basis points from Thursday's close, according to CMA DataVision. That means it would cost nearly $709,000 a year to insure $10 million in debt against default.


1 comment:

  1. That echoes CDS prices the week Lehman fell.