Lebanese bonds fall, CDS jump as political crisis escalates

LONDON: Lebanon's dollar bonds fell and the cost of insuring exposure to its debt jumped on Tuesday, as Saudi Arabia accused Beirut of declaring war against it, a dramatic escalation of a crisis engulfing the country.

Lebanon's 2022 issue fell 1.95 cents to 93.5 cents in the dollar, the lowest level since July 2013, according to Thomson Reuters data.

Five-year credit default swaps (CDS) for Lebanon jumped 13 basis points (bps) from Monday's close to 550 bps, according to IHS Markit data, the highest level since early December.