Cost of protecting Japan govt debt hits record high
Wednesday, February 18, 2009 : PermalinkForbes – The cost of protecting Japanese government debt against default has risen sharply as political uncertainty and worries about the nation’s fiscal position grew after data this week highlighted the depth of recession in the world’s second-biggest economy.
But traders say the market is quite illiquid and dominated by foreign investors such as hedge funds.
Japanese players do not believe the government would default on its debt and seldom buy protection for their holdings of Japanese sovereign bonds.
Tags: economy, fiscal position, forbes, foreign investors, government-debt, japanese players, japanese-government, political uncertainty, recession, sovereign bonds, worries
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