Bloomberg News

Turkey Default Swaps Rise to Highest Since 2009 on Europe Crisis

November 25, 2011

Nov. 25 (Bloomberg) -- The cost of protection against a Turkish default traded at the highest level since April 2009 on concern Europe’s debt crisis is deepening.

Five-year Turkish credit-default swaps jumped 15 basis points to 333 basis points, according to prices from data provider CMA at 12 p.m. in London. Turkey’s CDS traded at 139 basis points a year ago.

The swaps pay buyers should a government or company fail or be unable to adhere to its debt agreements. An increase in the price corresponds with an increase in investor perception of risk.

--Editors: Stephen Kirkland, Linda Shen

To contact the reporter on this story: Benjamin Harvey in Istanbul at bharvey11@bloomberg.net

To contact the editor responsible for this story: Mark Bentley at mbentley3@bloomberg.net


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