Credit Risk Soars From Japan to Australia on Global Bank Anxiety
- CDS costs reach new highs as concern in Europe sparks selloff
- Holiday closures across much of Asia reduce market liquidity
Why You Need to Pay Attention to Credit Analysis
This article is for subscribers only.
The cost of insuring corporate bonds in Japan and Australia surged amid mounting concern about the prospects for global banks and a selloff in riskier assets worldwide.
The iTraxx Japan index of credit-default swaps jumped 8 basis points to 103 basis points as of 12:48 p.m. in Tokyo, according to Citigroup Inc. pricing. The measure hasn’t been that high since July 2013, based on CMA data. The Australian CDS gauge climbed 10 basis points to 169 as of 2:51 p.m. in Sydney, Australia & New Zealand Banking Group Ltd. prices showed. The index last closed higher in September 2012, CMA data show.