U.S. Credit Swaps Decline to One-Year Low on Corporate Earnings
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The cost of protecting U.S. corporate bonds from default fell to the lowest in more than a year as company earnings exceeded forecasts, adding to evidence the economic recovery is gaining pace.
The Markit CDX North America Investment Grade Index, which investors use to hedge against losses on corporate debt or to speculate on creditworthiness, decreased 1.2 basis points to a mid-price of 81.7 basis points as of 5:05 p.m. in New York, according to Markit Group Ltd.