Dubai default risk plunges 60% from peak

The cost of insuring five-year Dubai debt against default fell to around 400 basis points (bp) as the emirate’s corporates, supported by its government, steadily chip away the debt.
Spreads on Dubai’s five-year CDS soared to nearly 1,000bp in February 2009, as investors grew increasingly concerned about the government’s willingness to meet the repayment schedule in 2009-10, particularly in quasi-sovereign debt.

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