KARACHI: Pakistan’s benchmark five-year Credit Default Swap (CDS) slumped by a massive 5,224 basis points to 71.64% on November 22, data released by a brokerage house showed. These numbers were crunched by Arif Habib Limited (AHL). The cost of insuring exposure to Pakistan’s five-year sovereign debt rose by 1,224 basis points over the weekend, hitting the highest-ever level of 92.53%. The rate at these levels reflects a certain default, according to analysts, who also warned the country’s sovereign dollar bonds would remain vulnerable until the political standoff between the government and the Imran Khan-led PTI comes to an end. “The situation on the ground is challenging but not as grave as reflected by the current CDS rate,” an analyst said. “The margin for any misadventure was thin, for sure.” News Desk
