Posted on 02/12/2010 6:37:08 PM PST by TigerLikesRooster
Feb. 12, 2010, 4:43 p.m. EST
Dubai debt concerns re-emerge
Cost of protection against Dubai default back near November high
By Alistair Barr, MarketWatch
SAN FRANCISCO (MarketWatch) -- Dubai debt concerns re-emerged Friday as the cost of protection against a default by the Persian Gulf emirate climbed to the highest level since November, according to data provider Markit.
The price of credit default swaps on Dubai government debt jumped to 630 basis points on Friday, up from 592 on Thursday, Markit data show. These CDS prices were last above the 630-point mark on Nov. 27, when they traded at 634 basis points.
Late last November, investors were concerned that state-owned conglomerate Dubai World and its Nakheel property-development unit couldn't meet imminent debt obligations. Dubai World said at the time that it wouldn't pay interest until May as it sought to reorganize more than $20 billion of debt.
CDS prices dropped after Abu Dhabi lent Dubai $10 billion to ease the cash crunch. Read about the bailout.
However, broader sovereign-debt concerns have increased in recent weeks as Greece struggles with a large fiscal deficit and surging borrowing costs. Read about Greece's problems.
(Excerpt) Read more at marketwatch.com ...
P!
Well, I’m certainly glad I didn’t get around to buying one of those fashionable, multi-million-dollar condos built on an artificial sandbar off the Dubai coast. < /sat >
HEY TIGER did you hear people were stuck in Elevator
I would say the situation looks Dubai-ous. (pa dump bump)
Funny thing is that if you are a debtor in Dubai and default on your debts you go to debtor’s prison.
If you are the Dubai government and default, well . . .
bump to the top
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