The cost of insuring Dubai Holding debt against default has risen over the past two weeks despite what analysts say is evidence that it can meet its immediate obligations.
Concerns have risen about Dubai Holding since its sister company Dubai World announced in November a debt restructuring.
Credit default swaps (CDS) for Dubai Holding Commercial Operations Group (DHCOG) have climbed 14 per cent since December 15 to more than 2,000 basis points or 20 percentage points, according to data from CMA DataVision in New York. That means it costs more than US$2,000 (Dh7,346) to insure $10,000 worth of Dubai Holding bonds.
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