The cost of insuring against default on European sovereign and corporate debt rose, according to traders of credit-default swaps.
The Markit iTraxx SovX Western Europe Index of swaps on 15 governments rose two basis points to 331 at 11 a.m. in London. An increase signals deterioration in perceptions of credit quality.
Contracts on the Markit iTraxx Crossover Index of 50 companies with mostly high-yield credit ratings climbed seven basis points to 643, according to JPMorgan Chase & Co.
The Markit iTraxx Europe Index of 125 companies with investment-grade ratings rose 1.5 basis points to 151.25 basis points. The Markit iTraxx Financial Index linked to senior debt of 25 banks and insurers increased 8.5 basis points to 234 and the subordinated index rose nine to 414.
A basis point on a credit-default swap protecting 10 million euros ($13 million) of debt from default for five years is equivalent to 1,000 euros a year. Swaps pay the buyer face value in exchange for the underlying securities or the cash equivalent should a borrower fail to adhere to its debt agreements.