Lebanon CDS Soar to Record High After President Says Economic Sacrifices Needed

The cost of insuring exposure to Lebanon’s sovereign debt rose to a record high on Friday after the president warned of the risk of harsh financial measures from international institutions unless sacrifices were made to save the country from economic crisis, Reuters reported. Lebanon’s five-year credit default swaps (CDS) rose to 990 basis points (bps), up 33 bps from Thursday’s close, data from IHS Markit showed. In a speech on Thursday, President Michel Aoun said: “If we do not all make a sacrifice today and accept to waive some of our benefits, we are running the risk of losing them all, when our country comes to the table of international lending institutions, with all the tough economic and financial schemes that they may impose on us.” Read more