KARACHI, Nov 15(ABC): Pakistan’s five-year credit default swap — used to insure against restructuring or default — has sharply widened as investors become wary of the country’s ability to meet its bond obligations, The News reported Tuesday.
On November 11 (Friday), the CDS increased by 394 basis points (bps) day-on-day to 64.19%, according to data from Arif Habib Limited. The CDS has surged by 4,210bps since October 11, 2022.
After having stood at 52% at the beginning of this month, the CDS started to spike. This increase indicates that investors were worried that the country would miss its obligation to repay credit holders $1 billion because the Sukuk is due to mature on December 5, 2022.
