The Markit CDX North America Investment Grade Index, a credit-default swaps benchmark that investors use to hedge against losses on corporate debt or to speculate on creditworthiness, fell 0.9 basis point to a mid-price of 100 basis points at 8:04 a.m. in New York, according to prices compiled by Bloomberg.
The measure decreased after Spain sold 1.9 billion euros ($2.5 billion) of bills, while the Netherlands auctioned 2 billion euros of securities. New home sales in the U.S. probably rose in March, according to the median estimate of economists surveyed by Bloomberg before a Commerce Department report today.
The credit swaps index typically falls as investor confidence improves and rises as it deteriorates. The contracts pay the buyer face value if a borrower fails to meet its obligations, less the value of the defaulted debt. A basis point equals $1,000 annually on a contract protecting $10 million of debt.
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