LONDON, Feb 27 (Reuters) – The cost of insuring exposure to debt issued by the governments of Italy, a number of Gulf states, Brazil and Mexico rose to multi-month highs after the spread of the coronavirus roiled financial markets around the globe.
Five-year credit default swaps (CDS) for Italy jumped 15 basis points (bps) from their Wednesday close to 132 bps, their highest level in over two months, according to IHS Markit.
CDS of oil exporter Saudi Arabia climbed 10 bps to 77 bps as oil prices dived to their lowest in over a year, while Bahrain and Qatar also saw CDS levels rise.
Brazil saw its CDS jump 20 bps to 131 bps while Mexico’s rose 16 bps to 100 bps, both at their highest since mid-October.
Financial markets were rocked again on Thursday by the growing coronavirus fears, with the surge in volatility and collapse in risk appetite hitting emerging markets particularly hard. (Reporting by Karin Strohecker Edited by Tom Wilson)
Source: Read Full Article