As Hungary’s borrowing costs have kept on rising higher and higher and the forint depreciated to a new record low of 324 versus the euro, the country’s cost of insuring against default with credit-default swaps rose to a new record high for the third day in a row on Thursday.
According to Markit data quoted by Reuters, Hungary’s 5-yr CDS spread leaped by 38 basis points to 754 bps, which pushed Poland’s CDS 16 bps higher to 307 bps and the Czech indicator by 15 bps to 194 bps.
The risk premium of Hungary’s two regional peers rose to the highest level since November 2011, while the Hungarian figure has never been this high.
In the chart below you find CDS data by Datastream, which shows systematically lower figures than data series by Markit and CMA, which are watched more closely by the market.
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