An apparent 163 basis points to 522. In other words the market sees a BIG middle eastern property developer (commercial) sinking real quick.
I wrote this blog post on November 16th 2009 titled Stocks globally may rally whilst the global economy cracks up in which in indicated that rallies in stock markets could continue right into 2010 although some "heads up" events are on the calendar. It appears these 'events' could be sooner.
The possible bankruptcy of Dubai World could not only derail markets (risk aversion) but hammer down on CDS spreads across the middle east. Since the Dubai government invests heavily into private and public investments. A nasty default crunch could be settling in and the first of the commercial property collapses (it's coming).
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