Credit Swaps in U.S. Rise as Spanish Yields Climb on Fiscal Woes
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A gauge of U.S. company debt risk rose for the first time in four days after approval of a bank bailout failed to stop a surge of Spanish bond yields, escalating concern that Europe’s fiscal turmoil is intensifying.
The Markit CDX North America Investment Grade Index, a credit-default swaps benchmark used to hedge against losses on corporate debt or to speculate on creditworthiness, jumped by the most in two weeks, climbing 3.3 basis points to a mid-price of 111.3 basis points at 5:01 p.m. in New York, according to prices compiled by Bloomberg. Contracts tied to Citigroup Inc. and Bank of America Corp. climbed the most since May.