The cost of insuring Dubai sovereign debt eased further on Wednesday on relief the emirate would restructure a smaller amount of debt than expected, with five-year credit default swaps (CDS) quoted down 120 basis points from the start of this week, according to CMA DataVision. CDS were quoted at 453 bps from a Tuesday close of 460 bps and a Monday close of 570 bps, CMA said. This means it costs $460,000 to insure $10 million of Dubai sovereign debt for a five-year period. The cost of insuring debt from state-run Dubai Ports World DPW,DI for five years also slipped 3 bps to 514 bps, also much lower than the 643 bps quoted at close of trade on Monday. The $3.5 billion Sukuk bond for Nakheel, maturing this month, one of issues to be restructured traded at just 55 points.
