Wednesday, 15 April 2015

Markets price in greater chance of Greek government default

The cost of insuring against a default by the Greek government has spiked sharply higher as worries about the ability to meet debt repayments have intensified. Credit default swap prices, which provide investors with protection to insure against debt default have surged higher. The CDS market is now implying a 77% probability of default by the Greek government in the next five years, according to Markit data.