Tuesday, July 17, 2007

Corporate Bond Risk Rises for a Second Day, Worries About Subprime Mount

(Bloomberg) -- The risk of owning U.S. and European
corporate bonds rose as investors speculated losses from
subprime mortgage securities will accelerate, according to
traders of credit-default swaps.

Contracts based on $10 million in the CDX North America
Investment-Grade Index of 125 companies rose $4,000 to an
offered price of $48,250 at 3:51 p.m. in New York, Deutsche Bank
AG prices show. The iTraxx Crossover Index of 50 European
companies jumped 20,500 euros ($28,252) to 288,000 euros at 5:30
p.m. in London, according to JPMorgan Chase & Co. An increase in
the indexes suggests deterioration in the perception of credit
quality.


Read more at Bloomberg Bonds News

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