Are national newcomers stable?CDS premium peaks and falls

Our credit default swap, CDS premium, which had soared due to political uncertainty, has recently turned downward.

The CDS premium is an indicator of the country's external credibility.

The higher the credit risk of the country in which the bond was issued, the higher it is, and the lower it is, the lower it is.

On the 17th, local time in the New York market, the 5-year Korean CDS premium closed at 38.16bp.

It is a slight increase of 0.27bp from the previous trading day, but it seems to have been bent compared to a week ago, when it was on the rise.

Until now, the CDS premium had averaged 34bp in November last year, but since then, the emergency martial law and impeachment have continued, drawing a curve upward.

In particular, it soared to 40.42bp on the 13th, just before the execution of the second arrest warrant for President Yoon Suk Yeol.

It was the first time in nine months that the CDS premium exceeded 40bp based on the closing price since April last year.

Along with the CDS premium, the won-dollar exchange rate, which has been high on political uncertainty, is also stabilizing.