Corporate Bond Default Risk Rises on Concern of U.S. Recession
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The risk of companies defaulting rose to the highest in a month as larger-than-forecast U.S. factory orders and a drop in initial jobless claims failed to ease concerns that the U.S. economy is headed toward recession, trading in credit-default swaps show.
Contracts on the Markit CDX North America Investment Grade Index, a benchmark for the cost of protecting corporate bonds from default, increased 2.75 basis points to 83.75 basis points, according to Deutsche Bank AG in New York. Credit-default swap indexes in Europe and Asia also reached the highest since the start of December.