South Korea’s credit default risk fell to the lowest level in more than 12 years, the Finance Ministry said Nov. 6, underscoring foreign investors’ confidence in Asia’s fourth-largest economy.
The credit default swap premium for Korean foreign exchange stabilization bonds with a five-year maturity came to 27 basis points on Nov. 5, the lowest since Jan. 2, 2008, when the corresponding figure stood at 47 basis points.
The CDS premium for the Korean bonds soared to 699 basis points on Oct. 27, 2008, amid the global financial crisis.
The ministry said it showed foreign investors’ positive perspective on Korea’s economy despite uncertainties in the global economy.
It also marked the lowest level among emerging countries.
By Ram Garikipati and newswires (firstname.lastname@example.org)