Do I need to clear my cache or something? I thought Dubai was clear until April.
Dubai CDS spreads are back near their all-time highs. Bond investors appear to be getting a little spooked. Since bond investors are the “smart investors,” this might be a signal for more trouble ahead.
I feel a little silly for suggesting this, but I’ve also heard rumors of countries trying to ban CDS contract trading on their debt. If that’s actually the case, then there may be some people trying to get CDS protection before such bans fall into place. I’m not happy with this explanation. I expect more reasoned behavior from bond traders.
