Junk-Bond Risk Rises in Europe as Greek Default Concern Mounts
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The cost of insuring high-yield corporate debt in Europe is set for the biggest weekly rise since December as Greece negotiates to avoid default.
The Markit iTraxx Crossover Index of credit-default swaps on high-yield companies climbed 36 basis points this week to 279 basis points, the highest since Feb. 20, according to data compiled by Bloomberg. Contracts insuring $10 million of Greek debt for five years signal an 79 percent probability of default, CMA data show.