DJ Ireland Sovereign CDS 11 Basis Points Wider At 508 Bps - Markit
LONDON (Dow Jones)--The price of Ireland's sovereign credit default swaps is floating wider Tuesday, according to data provider Markit. Ireland's sovereign CDS is now indicated 11 basis points wider from the close Monday at 508 basis points. Credit default swaps on other euro-zone peripherals, including Greece, Spain and Portugal, are also trading wider. Greece's sovereign CDS is now quoted 22 basis points wider from the close at 875 basis points, while Spain's sovereign CDS is indicated three basis points wider at 253 basis points and Portugal's sovereign CDS is being priced at 422 basis points, ten basis points higher from the close. The spreads are moving wider in line with falling equity markets, Markit vice president, credit research, Gavan Nolan said in a note. Focus remains on Ireland and the prospect of an imminent bailout. CDS are tradable, over-the-counter derivatives that function like a default insurance contract for debt. If a borrower defaults, the protection buyer is paid compensation by the protection seller. -By Irene Chapple, Dow Jones Newswires;