SA, Indonesia CDS at over 1-1/2 yr highs as EM selloff extends

The cost of insuring exposure to sovereign debt issued by South Africa and Indonesia rose on Wednesday, as a selloff across emerging markets deepened.

South African five-year credit default swaps (CDS) added 7 basis points (bps) to 263 bps and the highest level in 21 months, according to data from HIS Markit. Indonesian CDS added 4 bps to 146 bps – levels last seen 19 months ago.

CDS for Malaysia and Turkey climbed 6 bps and 4 bps respectively to trade at multi-week highs.