Breaking News

U.S. Said to Limit Visitors From Ebola Nations to Five Airports
Tweet TWEET

Australia Bond Risk Increases, Credit-Default Swap Prices Show

The cost of insuring Australian corporate bonds from non-payment rose, according to traders of credit-default swaps.

The Markit iTraxx Australia index climbed 0.5 basis point to 96 basis points as of 11:30 a.m. in Sydney, Westpac Banking Corp. prices show. The gauge is poised for a 4.25 basis point retreat in December, the fourth straight month of declines, according to CMA.

The Markit iTraxx Japan index was unchanged at 67.25 basis points as of 9:24 a.m. in Tokyo, Citigroup Inc. prices show. The measure reached its lowest close since May 2008 on Dec. 26, according to data provider CMA, which is owned by McGraw-Hill Cos. and compiles prices quoted by dealers in the private market.

The Markit iTraxx Asia index of 40 investment-grade borrowers outside Japan was little changed at 127.5 basis points as of 8:48 a.m. in Singapore, Mitsubishi UFJ Securities HK Ltd. prices show. The benchmark has ranged from 99.5 to 177.8 this year, CMA data show. A basis point is 0.01 percentage point.

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: Tanya Angerer in Singapore at tangerer@bloomberg.net

To contact the editor responsible for this story: Katrina Nicholas at knicholas2@bloomberg.net

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.