LONDON, June 19 (Reuters) - The cost of insuring exposure to Turkish and South African sovereign debt spiked on Tuesday to the highest since September 2015 and December 2016 respectively as investors eyed an escalating trade dispute between China and the United States.
Emerging markets have taken a hit on fears that a full blown trade war will crimp global growth and hinder emerging market exporters.
Turkish five-year credit default swaps (CDS) rose 4 basis points (bps) from Monday’s close to 329 bps, according to IHS Markit. This was the highest level in over 2-1/2 years.
IHS Markit data also showed that South African five-year CDS jumped 11 bps from Monday’s close to 229 bps, a 1-1/2 year high. (Reporting by Claire Milhench Editing by Catherine Evans)
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