Cost of insuring Bahrain's debt jumps as deficit jitters increase | Reuters

Cost of insuring Bahrain's debt jumps as deficit jitters increase | Reuters:

"The cost of insuring Bahrain’s sovereign debt against default has jumped to near multi-year highs this week because of concern the country will lose access to international capital markets, bankers and debt traders said on Wednesday.

 Bahrain credit default swaps soared to a 19-month high of 380 basis points on Tuesday from 283 bps at the end of April. On Wednesday, CDS pulled back slightly to 367 bps, implying a 23 percent chance of default in the next five years.

 Their previous peak of 405 bps was reached in February 2016, when oil prices below $35 a barrel threatened Gulf economies. Oil is now around $80, but that is not easing worries about Bahrain."



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