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Chart of the day: Mena CDS spreads

It has been an eventful six months in the Middle East and North Africa region – and the political turmoil has continued to be reflected in the credit markets

It has been an eventful six months in the Middle East and North Africa region – culminating in Libyan rebels yesterday entering the capital Tripoli. And the political turmoil has continued to be reflected in the credit markets.

As the graph shows, there was a sharp spike in prices of credit default swaps, the insurance contracts taken out in case of default of sovereign issued debt, across the Mena region at the start of the Arab Spring.

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