: Dubai World may offer 60% on money owed
Dubai stocks fell again, though only slightly, and the price of insuring against a default in the city-state rose on Monday, on the second day of market upheaval following news that flagship corporation Dubai World may offer creditors just 60% of the money they are owed as part of a deal to reschedule $22 billion in debt.
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The wider spread [r.e. credit default swap insurance] reflects “a combination of…a massive debt buildup, overreliance on short-term debt of variable quality and help by a wealthy neighbor,” said credit strategists at BNP Paribas SA in a note to clients. “While all eyes are on Greece, it is worth keeping an eye on the situation in Dubai where considerable uncertainty prevails.”
