Bank Debt Swaps Fall to Week-Low on Stress Test Bets, Earnings
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The cost of insuring against losses on European financial bonds fell to the lowest in one week on speculation that stress tests will reassure investors that banks can withstand a crisis.
The Markit iTraxx Financial Index of credit-default swaps on 25 of the region’s banks and insurers dropped 5 basis points to 135.5, JPMorgan Chase & Co. prices show. The contracts are down from a 15-month high of 200 basis points June 8.