Tuesday 5 April 2011

Dubai default risk back to pre-crisis level - Emirates 24/7

The cost of insuring five-year Dubai debt against default plunged to its pre-crisis levels this morning with the emirate’s economic engine roaring back to life in the first quarter of the year.

Dubai’s five-year credit default swaps (CDS) have continued to recover on positive economic and financial investment sentiment, and have dropped to about 380 basis points this morning according to CMA DataVision’s Sovereign Risk Monitor.

The CDS are now hovering around the same levels where they were in November 2009, before the Dubai government announced a standstill on debt held by Dubai World.

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