Market Watch
March 10, 2011
The cost to insure Greek debt rose to a fresh record Thursday and the risk premium seen in holding Spanish and Portuguese debt also rose after Moody's Investors Service downgraded Spain's credit rating. The spread on five-year credit-default swaps, or CDS, for Greek debt widened to a record 1,035 basis points, after closing Wednesday at 1,032 basis points, according to data provider Markit. That means that it costs $1.035 million a year to insure $10 million of Greek bonds against default. The Portuguese CDS spread widened to 504 basis points from 499 in the previous session, reaching back towards the highs around 550 basis points in mid-January. The Spanish CDS spread widened 10 basis points to 259, still far below its highs in November, according to Markit. Ireland's CDS spread slipped slightly to 592 basis points, from 597 Wednesday. Markit has been tracking spreads on Greece since 2001.
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