CDS on the debt of Rolls Royce has skyrockets in the aftermath of the Qantas’ engine explosion yesterday.
The explosion occurred in a Rolls Royce jet engine, and escaped the jet engine casing. The flying shrapnel could have caused severe damage to the A 380 Airbus just, but fortunately did not.
The company’s CDS has not been as lucky, however. Shares in Rolls Royce are down 9.7% on the news.