European corporate default insurance costs jump

Reuters

– Credit default swap indexes measuring the cost of insuring against European corporate bond defaults jumped on Monday to the highest since early-December as stock markets slumped on the prospect of a Russian attack on Ukraine.

The spread on the iTraxx European Crossover index, which measures the cost of insuring exposure to a basket of sub-investment-grade European companies surged nearly 13 basis points to 280 bps, the highest since December 6.

The spread on the iTraxx European index, which measures the cost of insuring against investment-grade corp bond defaults rose nearly 3 bps to nearly 58 bps, also the highest since December 6.

Related News:   New Jersey Gas Station Tipping, Do You Do It?

CDS for junk debt are up on average by more than 40 bps since the start of 2022 while those for high-grade corporate bonds have risen around 10 bps.


(Reporting by Yoruk Bahceli; editing by Sujata Rao)

You appear to be using an ad blocker

Shore News Network is a free website that does not use paywalls or charge for access to original, breaking news content. In order to provide this free service, we rely on advertisements. Please support our journalism by disabling your ad blocker for this website.