U.S. Homebuilders’ Default Swaps Jump on KB Home’s Earnings Miss

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The cost to protect the bonds of U.S. homebuilders surged after KB Home reported a bigger-than-expected loss as orders plunged.

Credit-default swaps protecting the debt of the Los Angeles-based homebuilder, which targets first-time buyers, jumped 21.2 basis points to 436.9 basis points, according to data provider CMA.