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Europe Debt Risk Gauges Jump Most Since August on Sell-Off

  • Default-swaps indexes rise as high-yield bonds feel pressure
  • Jump in risk gauge shutters sales of new bonds in Europe
Updated on

A key measure of risk for the debt of Europe’s most fragile companies jumped to the highest since August as deepening fears about the impact of China’s coronavirus roiled markets.

The Markit iTraxx Crossover Index linked to companies with mostly junk ratings climbed more than 10 basis points to around 229 on Monday, the most since August, according to CBIL prices compiled by Bloomberg. The cost of insuring investment-grade and financial bonds against default also rose.