(Bloomberg) -- The risk of owning corporate bonds
rose to the highest in at least two years in the U.S. and Europe
on concern hedge funds may have to sell assets to cover losses,
according to traders of credit-default swaps.
Contracts on 10 million euros ($13.8 million) of debt
included in the iTraxx Crossover Series 7 Index of 50 European
companies increased 20,000 euros to 364,000 euros at 2 p.m. in
London, according to JPMorgan Chase & Co. The index, which rises
as perceptions of credit quality deteriorate, has more than
doubled since the start of June. The CDX North American
Crossover index rose $15,000 to $299,400.
Read more at Bloomberg Bonds News
rose to the highest in at least two years in the U.S. and Europe
on concern hedge funds may have to sell assets to cover losses,
according to traders of credit-default swaps.
Contracts on 10 million euros ($13.8 million) of debt
included in the iTraxx Crossover Series 7 Index of 50 European
companies increased 20,000 euros to 364,000 euros at 2 p.m. in
London, according to JPMorgan Chase & Co. The index, which rises
as perceptions of credit quality deteriorate, has more than
doubled since the start of June. The CDX North American
Crossover index rose $15,000 to $299,400.
Read more at Bloomberg Bonds News
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