German, Italian Credit Swaps Hit Records as Debt Crisis Deepens
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The cost of insuring against a default on German and Italian government surged to records as Italy’s downgrade signaled Europe’s debt crisis is spreading.
Credit-default swaps protecting Germany’s bonds rose four basis points to a record 94 as of 4 p.m. in London, while contracts tied to Italy jumped 25 basis points to 513, according to CMA.