Record highs for Greek CDS raise market concern

Five-year credit default swaps (CDS) on Greek sovereign debt closed yesterday at a record high of 1,127 basis points, according to data provider Markit, after a downgrade from credit rating agency Moody's this week raised fears of a debt restructuring.

The swaps were trading tighter at 1.00pm UK time today, reaching 1,024bp, but low volumes make intraday prices on Greek CDS extremely volatile, and they can often differ substantially from the closing price. Moody's downgraded Greek sovereign debt