Spain, Portuguese CDS spreads hit record levels

The cost of insuring Spanish and Portuguese government debt against default hit record levels Wednesday, while the cost of protecting Irish debt neared levels seen ahead of Dublin's decision last weekend to seek a bailout. The spread on five-year Portuguese credit default swaps, or CDS, widened 21 basis points to 510 basis points, according to data provider Markit. That means it would cost $510,000 annually to insure $10 million of Portuguese debt against default, up from $489,000 on Tuesday. The Spanish CDS spread widened to 312 basis points from 310, Markit reported, while the Irish CDS spread widened 16 basis points to 595. The Belgian CDS spread also hit a record, widening to 155 basis points from 147.


[link to www.marketwatch.com]