Europe Financials Credit Risk Surges as Banks Lose Billions
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European banks and insurers’ credit risk rose to the highest in more than two years, following a $5.8 billion loss at Credit Suisse Group AG and signs of a slowdown in the global economy.
The cost of insuring the companies’ debt climbed for a sixth day, based on indexes tracking credit-default swaps. A gauge of swaps on subordinated financial debt rose as much as 20.5 basis points to 255 basis points, the highest since July 2013, according to data compiled by Bloomberg.