INSUBCONTINENT EXCLUSIVE:
market.
One-year contracts of credit default swaps (CDS), which act as a shield against likely default on outstanding debt securities by an
issuer, have hit the highest since November 2016
It climbed to 42.145, nearly a two-year high.
An overseas investor would pay 42.145 basis points or cents to buy an insurance against every
$100 investment in ICICI dollar-denominated bonds
Over a period of time, they will realise that the bank is not about an individual
managing director and CEO after Chanda Kochhar opted for early retirement
They fell 2.2 per cent Thursday during a broader market fall, mirroring weaknesses in overseas markets.
The CDS gauge started rising since
October first week, when it was trading around the 40.015 level.
Globally, investors are now increasingly turning risk-averse, shying away
This has added to the rise in the risk premium
associate professor of finance at SP Jain Institute of Management and Research
But what made ICICI Bank different from SBI is the leadership appointment at the former bank.
A panel led by retired Supreme Court judge B N
Srikrishna is now probing the alleged conflict of interest over some loans sanctioned to the Videocon group
The bank had initiated the internal investigation.
In addition, rising crude oil prices, a deteriorating current account deficit, and the
stress in the banking and financial ecosystem have contributed to the increased credit spreads, said Narayan.
