Russia’s debt security costs rose to a record high after tougher sanctions on the country prompted Moscow to take emergency measures to shield its financial sector.
The CDS for a five-year $ 10 million bond was $ 4 million in advance and $ 100,000 a year, suggesting a 56% chance of default, according to ICE Data Services.
ICE is the main clearing house for European CDS.
For the first time, the price of Russian bond protection is no longer officially listed on a base basis, as ICE figures show, as sellers now want to pay in advance, signaling that a default could be immediate.
New Western sanctions further isolate commodity-rich Russia from global funding, seeking to prevent its central bank from using foreign reserves to fight sanctions.
Trading volumes rose on Friday, as the debt protection price recorded a record fall, closing a week with serious price fluctuations.
One-year contracts also rose and show a 40% chance of default.
Source: Capital
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