(Bloomberg) -- The risk of owning European
corporate bonds soared after an index of securities linked to
U.S. subprime mortgages slumped to a record low, according to
traders of credit-default swaps.
Contracts based on 10 million euros ($13 million) of debt
included in the iTraxx Crossover Series 7 Index of 50 European
companies jumped 19,500 euros to 287,000 euros at 11:20 a.m. in
London, according to JPMorgan Chase & Co. Credit-default swaps,
based on bonds and loans, are used to speculate on the ability
of companies to repay debt and an increase indicates worsening
perceptions of credit quality.
Read more at Bloomberg Bonds News
corporate bonds soared after an index of securities linked to
U.S. subprime mortgages slumped to a record low, according to
traders of credit-default swaps.
Contracts based on 10 million euros ($13 million) of debt
included in the iTraxx Crossover Series 7 Index of 50 European
companies jumped 19,500 euros to 287,000 euros at 11:20 a.m. in
London, according to JPMorgan Chase & Co. Credit-default swaps,
based on bonds and loans, are used to speculate on the ability
of companies to repay debt and an increase indicates worsening
perceptions of credit quality.
Read more at Bloomberg Bonds News
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