Portugal Default Swaps Signaling Gain From Pain: Euro Credit
This article is for subscribers only.
Portugal’s fiscal reforms are giving investors the greatest confidence in its debt in more than a year, even as its economy struggles under the weight of austerity.
Credit-default swaps on Portugal dropped as low as 725 basis points today, from 1,515 in January and 1,237 in May. The contracts have fallen by the most of any government this year and by more than every nation except Ireland in the past month.