Dubai World News Hits Confidence
DUBAI -- Persian Gulf bonds tumbled and the cost of insuring against default across the region jumped Thursday, a day after the government of Dubai said it would ask to postpone debt of its corporate flagship Dubai World.
Credit agencies late Wednesday cut ratings of Dubai debt, as investors and analysts reassessed the region's willingness to bail out troubled borrowers.
Dubai's action also shook global markets. Stocks in London fell Thursday, with analysts blaming worry over international exposure to Dubai debt. Analysts and bankers, however, downplayed the notion of significant exposure by any one institution or any systemic risk from
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