CREDIT RISK

Welcome to the Crystallex HUB on AGORACOM

Crystallex International Corporation is a Canadian-based gold company with a successful record of developing and operating gold mines in Venezuela and elsewhere in South America

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KENTUNDERBERG

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CREDIT RISK

posted on Oct 07, 2008 09:58AM

Riskier credits such as Argentina and Venezuela were hit the hardest. Argentina's risk premium ballooned 155 basis points to 1,195 basis points over Treasurys, for negative 15.34% returns. The risk associated with ensuring Argentine bonds against default shot up 178 basis points to 1,437 basis points over Treasurys in the five-year credit default swaps market. Venezuelan debt returns were a negative 7.7%, as the sovereign spread ballooned 114 basis points to 1150 basis points over Treasurys.