The day after Gordon Bajnai was sworn in as Hungary’s new crisis-managing prime minister, the cost of insuring the country’s debt fell, market analysts said on Wednesday.
Hungary’s five-year credit default swaps fell to around 407 basis points, said CMA DataVision, a debt market monitor.
A CDS contract valued at 407 basis points means the cost of insuring every 10,000,000 euros worth of bond exposure against default is 407,400 euros a year for the five-year benchmark, compared to 630,000 euros last month.
In a separate report on Wednesday, investment consultancy Wood and Co said that Poland and Hungary were the most likely countries in the region to enter the ante-room to the euro, ERM-2, either before year-end or early next year.
“We expect the (forint) to … trade around 285-300 to the euro in coming quarters, beginning a sustainable, gradual recovery towards year-end,” it added.