Italy Leads Surge in Sovereign Debt Risk on Berlusconi Concerns
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Italy led an increase in the cost of insuring European sovereign debt on concern Prime Minister Silvio Berlusconi’s government is collapsing as he faces a parliamentary budget vote tomorrow.
Credit-default swaps on Italy climbed 13 basis points to 506 at 1 p.m. in London, approaching the record 534 set Sept. 22, according to CMA. The Markit iTraxx SovX Western Europe Index of swaps on 15 governments rose five basis points to 328. An increase signals deteriorating perceptions of credit quality.