Sovereign, Bank Credit-Default Swaps Surge to Records in Europe
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The cost of insuring against default on European sovereign and financial debt surged to records on concern the region’s debt crisis is worsening.
The Markit iTraxx SovX Western Europe Index of credit-default swaps on 15 governments rose 18 basis points to 328 at 5 p.m. in London. The Markit iTraxx Financial Index linked to senior debt of 25 banks and insurers soared 24 basis points to 270, according to JPMorgan Chase & Co. Both gauges are at all-time highs based on closing prices.