Credit Swaps in U.S. Fall as Euro Leaders Loosen Rescue Rules

A gauge of U.S. corporate debt risk fell the most in more than two weeks after European leaders agreed to relax rules on emergency loans for Spanish banks, reducing pressure on Spain and Italy’s bond yields.

The Markit CDX North America Investment Grade Index, a credit-default swaps benchmark used to hedge against losses on corporate debt or to speculate on creditworthiness, plunged 3.9 basis points to a mid-price of 114.3 basis points at 8:07 a.m. in New York, according to prices compiled by Bloomberg. The measure fell as much as 4.4 basis points today, the most since a 4.6-basis point drop on June 14.