Portuguese, Spanish CDS hit record highs
LONDON Nov 24 (Reuters) - The cost of insuring Spanish, Portuguese and Belgian bonds against default rose to record highs on Wednesday as Ireland's debt crisis spilled over into other euro zone debt markets.
"Fears of contagion permeate the market, despite the (Irish) bailout earlier this week," said Markit analyst Gavan Nolan, referring to Dublin's request for European Union/IMF aid. Overnight, ratings agency Standard and Poor's cut Ireland's credit rating to A from AA- and placed the sovereign on creditwatch negative.
Five-year credit default swaps (CDS) on Portuguese government debt rose to 510 basis points, up 21 bps on the day, according to Markit. This means it costs 510,000 euros to protect 10 million euros of exposure to Portuguese bonds. Irish CDS was also higher on the day, 16 bps up at 595 bps.
(Reporting by William James)
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