Hungary's 5-year credit default spread has jumped above 600 bp on news of a Standard & Poor's downgrade from investment grade to junk. This sudden increase was not paralleled by any other country's CDS, according to the data from CMA Datavision.
Hungary's 5-year CDS has jumped 36 bp to 607 on Thursday, the latest data by London-based CMA Datavision shows.
The report has also revealed that this major increase was not paralleled by a significant change in other countries' credit default spreads. That is, the CDS jump can be safely attributed to Wednesday evening' S&P downgrade to junk rating.
The second major downgrade for Hungary has made its impact felt in all asset markets. The Hungarian forint lost 2% in value on Wednesday, government bond yields jumped 25 to 30 bp in Thursday morning secondary market trade; 12-month T-bills were sold at significantly higher yields today than before. For details please see:
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