Bond Risk in Asia Increases, Credit-Default Swap Prices Show

The cost of insuring corporate and sovereign bonds against non-payment in Asia rose, credit-default swaps show.

The Markit iTraxx Asia index of 40 investment-grade borrowers outside Japan climbed 3 basis points to 135 basis points as of 8:18 a.m. in Singapore, Westpac Banking Corp. (WBC) prices show. The benchmark slid the most in nine months on June 14, according to data provider CMA.

The Markit iTraxx Japan index increased 2 basis points to 109.5 as of 9:21 a.m. in Tokyo, according to Citigroup Inc. prices. The gauge rose for five consecutive weeks through June 14, according to CMA, which is owned by McGraw-Hill Cos. and compiles prices quoted by dealers in the privately negotiated market.

The Markit iTraxx Australia index declined 3 basis points to 129 basis points as of 10:20 a.m. in Sydney, according to National Australia Bank Ltd. prices. The measure is set for its second straight daily fall, CMA prices show.

Credit-default swap indexes are benchmarks for insuring bonds against default and traders use them to speculate on credit quality. A drop signals improving perceptions of creditworthiness, while an increase suggests the opposite.

The swap contracts pay the buyer face value in exchange for the underlying securities if a borrower fails to meet its debt agreements.

To contact the reporter on this story: Jun Yang in Hong Kong at

To contact the editor responsible for this story: Katrina Nicholas at

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.