Corporate Default Swaps Post Biggest Monthly Increase Since May
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The cost of insuring against losses on European corporate bonds rose, posting the biggest monthly increase since May, on concern a slowdown in the U.S. recovery will trigger a global double-dip recession.
The Markit iTraxx Crossover Index of credit-default swaps on 50 companies with mostly high-yield credit ratings climbed 53 basis points this month to 532, and was 7 basis points higher today, according to JPMorgan Chase & Co. at 4 p.m. in London. The gauge, which is up 100 basis points since the start of the year, pared its advance after consumer confidence and home-price increases beat economist estimates.