CDS spreads widen on Asian sovereigns

The cost of credit protection on east Asian sovereigns rose in early European trading today, despite predictions from the World Bank that China's economy will bottom out by mid-2009, offering a ray of hope for the region.

Five-year senior credit default swap (CDS) spreads referencing Chinese sovereign debt were trading wider at 157.1 basis points at 3:15pm BST today from 143.2bp at close of trading yesterday, according to data from credit information specialist CMA Datavision. Spreads on South Korea moved out to 319bp from 296bp.

CDSs on the Philippines also widened, moving from 313.5bp to 332.8bp, while CDSs on Thailand moved to 213.7bp from 196.2bp. Elsewhere in the region, spreads on Malaysian debt hit 218.1bp

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