Corporate Bond Risk Rises in Europe, Credit-Default Swaps Show
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The cost of insuring against losses on European corporate bonds rose, according to traders of credit-default swaps.
Contracts on the Markit iTraxx Crossover Index of 50 companies with mostly high-yield credit ratings soared 19 basis points to 500, according to JPMorgan Chase & Co. at 5 p.m. in London. The index is a benchmark for the cost of protecting bonds against default and an increase signals deterioration in perceptions of credit quality.