The cost of insuring against default on European corporate debt was little changed, according to BNP Paribas SA.
Contracts on the Markit iTraxx Crossover Index of 50 companies with mostly high-yield credit ratings fell 3.5 basis points to 576.5 at 9:05 a.m. in London. A decline signals improvement in perceptions of credit quality.
The Markit iTraxx Europe Index of 125 companies with investment-grade ratings fell 0.25 basis point to 116.75 basis points.
The Markit iTraxx Financial Index linked to senior debt of 25 banks and insurers rose one basis point to 203 and the subordinated index climbed 3.5 to 323.5.
A basis point on a credit-default swap protecting 10 million euros ($13.4 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.