Insuring against default hits high

London: The cost of insuring against default on Portuguese, Irish and Greek government debt rose to record highs yesterday, putting the risk of the region’s sovereign debt in renewed danger.

Contracts on Portugal climbed 38 points to 1,016, signalling a 58% prob-ability of default within five years, according to CMA. Swaps on Ireland jumped 59 points to 914 and Greece surged 25 to 2,175.

Swaps on Italy rose 27.5 points to 245, the highest level since January 11, Spain climbed 7.5 to 310 and Belgium was up 13 at 174. An increase signals deterioration in perceptions of credit quality.