Credit Risk Rises for Fifth Week in Europe on Fed QE Withdrawal
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The cost of insuring European company bonds against losses headed for a fifth weekly increase as the Federal Reserve confirmed it will slow asset purchases if the economy continues to strengthen.
The Markit iTraxx Europe Index of credit-default swaps on 125 companies with investment-grade ratings climbed 13 basis points to 123, the longest rising streak since the week ending Aug. 26, 2011, according to data compiled by Bloomberg. The average yield investors demand to hold European corporate bonds rose 15 basis points to a four-month high of 2.19 percent, Bank of America Merrill Lynch index data show.