Bloomberg Anywhere Login


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

Dell Default Swaps Surge on Private-Equity Buyout Talks

Jan. 14 (Bloomberg) -- The cost of protecting Dell Inc.’s debt from losses surged following a report that the personal-computer maker is in buyout talks with private-equity firms.

Five-year credit-default swaps on the Round Rock, Texas-based company’s debt soared 104 basis points to 309 basis points as of 2:41 p.m. in New York, according to data provider CMA, which is owned by McGraw-Hill Cos. and compiles prices quoted by dealers in the privately negotiated market.

Credit-default swaps, which typically rise as investor confidence deteriorates and fall as it improves, 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.

Dell is discussing going private with at least two firms, according to a person with knowledge of the matter who asked not to be identified because the talks are private. The discussions are preliminary and could fall apart, according to the report from Bloomberg News.

Link to Company News:{DELL US <Equity> CN <GO>}

To contact the reporter on this story: Madhura Karnik in New York at

To contact the editor responsible for this story: Alan Goldstein at

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.