Greece Credit-Default Swaps Surge to Record 2,189 Basis Points

The cost of insuring against default on Greek, Irish and Portuguese government debt surged to records, driving a gauge of sovereign bond risk to an all-time high, on concern Europe’s deficit crisis is worsening.

Credit-default swaps on Greece soared 435 basis points to 2,189, while Ireland rose 37 to 799 and Portugal climbed 21 to 806, according to CMA prices at 5 p.m. in London. The Markit iTraxx SovX Western Europe Index of swaps on 15 governments jumped 9 basis points to 235. An increase signals deteriorating perceptions of credit quality.