Company Bond Risk Falls as French Banks Reject Funding Concerns
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Benchmark gauges of corporate credit risk in the U.S. and Europe fell from the highest levels in more than two years as France’s biggest banks said they had ample access to cash to counter a reduction in financing from U.S. money-market funds as Europe’s debt crisis intensified.
The Markit CDX North America Investment Grade Index, which investors use to hedge against losses on the debt of U.S. and Canadian companies, decreased 4.4 basis points to a mid-price of 131.5 basis points as of 4:47 p.m. in New York, according to Markit Group Ltd. The Markit iTraxx Europe Index of 125 companies with investment-grade ratings fell 9.2 basis points to 190.1. Swaps on an index tied to European banks and insurance companies fell from a record.