Wind Credit-Default Swaps Fall to Lowest in More Than Two Years

The cost of insuring the debt of Wind Acquisition Finance SA, a unit of Italian mobile provider Wind Telecomunicazioni SpA, fell for a third day to the lowest level since June 2011.

Credit-default swaps on Wind dropped as much as 23.5 basis points today to 423 basis points, according to data compiled by Bloomberg. The swaps are down from 508 basis points Sept. 13 and the equivalent of 1,680 basis points in July 2012.

The company’s 11.75 percent bonds maturing in July 2017 were quoted at 106.5 cents on the euro, the highest since July 24, at 2:40 p.m. in London, up from 101.8 cents in June.

A basis point on a credit-default swap protecting 10 million euros ($13.3 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.

To contact the reporter on this story: Abigail Moses in London at amoses5@bloomberg.net

To contact the editor responsible for this story: Shelley Smith at ssmith118@bloomberg.net

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