Friday, June 8, 2007

Corporate Bond Risk Jumps to Two-Month High in Europe, Default Swaps Show

(Bloomberg) -- The risk of owning European corporate
bonds jumped to the highest in two months on concern higher
interest rates will boost company borrowing costs, 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 surged 11,500 euros to 217,000 euros, according to
JPMorgan Chase & Co. Contracts on the CDX North American
Crossover Index jumped $7,000 to $154,000 at the close of trading
in New York yesterday.


Read more at Bloomberg Bonds News

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