CDS trading in MENA region spikes, despite lack of deliverable obligations

Increase in Saudi CDS trading despite no deliverable obligations

Ongoing turbulence in the Middle East and North Africa has led to an uptick in credit default swap trading in the region. But with some countries affected by the turmoil having few dollar-denominated bonds outstanding, which would be deliverable into a credit event auction should a default occur, buying CDS offers scant protection.

Heightened geopolitical risk has led to the cost of five-year protection on Bahrain widening dramatically from 185.89 basis points at the start of the year to 357.60b

To continue reading...

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: