Company Bond Risk Heads for 3rd Weekly Drop on Europe Optimism
This article is for subscribers only.
Indexes measuring the cost of insuring against losses on European corporate bonds headed for a third week of declines as optimism the region’s economic recovery is accelerating fueled demand for risky assets.
The Markit iTraxx Crossover Index of credit-default swaps linked to 50 companies with mostly high-yield credit ratings decreased 3 basis points to 468, according to JPMorgan Chase & Co. at 2:30 p.m. in London. The gauge, which declines as investor confidence improves, is 11 basis points lower on the week and down from 536 on July 16.