Britain’s credit default swaps hit highest since 2016 Brexit vote

LONDON (Reuters) – News of a vote of no confidence against Britain’s Prime Minister Theresa May on Wednesday pushed the cost of insuring UK government debt against default to its highest since the country’s 2016 vote to leave the European Union.

Confirmation of the vote lifted 5-year UK Credit Default Swaps, which traders use as a hedge against uncertainty, to 40 basis points and up from around 31 basis points at the start of December, data from Markit showed.

The CDS level had spiked to 45 basis points the day after the June 23 2016 Brexit vote.

Reporting by Marc Jones; editing by Helen Reid



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