Sovereign Debt Risk Heads for Record Monthly Increase in Europe
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Confidence in the ability of European governments to resolve the region’s budget crisis is waning, with a gauge of sovereign debt risk heading for the biggest monthly increase since it was created a year ago.
The Markit iTraxx SovX Western Europe Index of credit-default swaps linked to 15 governments is up 41.75 basis points so far this month at 156.5, according to data provider CMA. Swaps on Italy, Ireland and Spain are set for record one-month increases. Contracts on Portugal are poised for the biggest rise since April and Greece for the most since June.