Dubai World’s shock forces up all emerging market prices
Dubai World's restructuring announcement caused the cost of insuring Dubai's debt against default to jump $60,000 to $500,000 annually for every $10m of debt covered for five years, the FT reports.
Other Gulf states and emerging markets with perceived problems were also under pressure. Hungary, which has had problems refinancing debt, and Greece, with one of the highest debt burdens in Europe, saw their insurance costs jump.
"In the absence of definitive information it's hard to see the market treating this as an isolated one-off," said one trader.
