• Most Popular
  • Most Shared

Cost of insuring Iceland sovereign debt surges-CMA

Wed Oct 1, 2008 8:44am EDT

NEW YORK, Oct 1 (Reuters) - The cost of protecting Iceland's sovereign debt against default rose sharply Wednesday on continued concerns about the Icelandic economy and its troubled banks.

Credit default swaps on Iceland's sovereign debt rose by 45 basis points to 635 basis points, or $635,000 to annually insure $10 million of debt over a five-year period, according to CMA Datavision.

The Icelandic currency, the crown, fell to a new record low of 153.70 per euro after Icelandic bank Straumur-Burdaras STRB.IC said it would buy assets from Landsbanki LAIS.IC.

The move comes after the government earlier this week seized control of the country's third-biggest bank Glitnir GLB.IC because of a liquidity crisis.

(Reporting by Ciara Linnane, Editing by Walker Simon)



More from Reuters

Joint Terminal Attack Controller SSgt Clinton J. Herbison, a U.S. Airman from the 817 Expeditionary Air Support Operations Squadron (EASOS) takes a break during a night mission near Honaker Miracle camp at the Pesh valley of Kunar Province August 12, 2009. Credit: REUTERS/Carlos Barria

Pictures of the Year

A look at the best photos of 2009.  Slideshow 

    PICTURES
    The Dalai Lama jokes with a nasal spray after being asked his opinion on the swine flu during a press conference after his first lecture in Lausanne, Switzerland, August 4, 2009. REUTERS/ Valentin Flauraud

    What a wacky year it's been...

    Um, what's up the Dalai Lama's nose? "Oddly Enough" editor Bob Basler rounds up the goofiest photos of the year.  Full Article 

    Oddly Enough
    A caution sign is seen next to a stock board at the Australian Securities Exchange (ASX) in Sydney September 5, 2008. REUTERS/Daniel Munoz
    Political Risk in 2010:

    Don't say we didn't warn you

    With the financial crisis (mostly) in the past, U.S. investors are eying a fresh start to the coming year. Here's a look at what speedbumps lie ahead.  Full Article 

    Global Markets