The so-called five-year CDS spread to Russia, which reflects the perception of country risk markets, during the day after January 13, dramatically increased by 26 basic points, almost 20 percent. The fact that insurance against the country’s debt collapse sharply took off in price, RBC writes with reference to the Bloomberg terminal data. CDS quotation reached 161.9 basis items.
CDS, Credit Default Swap – a derivative tool that the buyer acquires to insure from the default in exchange for regular payments. Than these payments are higher, the rislaries basic obligations.
The current growth was the largest day arrival for almost a biennium, from March 2020. The level also became the highest in the same time. Then the risk assessment grew against the background of the beginning of the pandemic, it is growing, as a rule, on the expectation of sanctions. The current level means that the insurance against a default on Russian papers within five years costs investors about 162 thousand dollars a year.