Friday, June 8, 2007

Company Bond Risk Slips From Two-Month High, Credit Default Swaps Show

(Bloomberg) -- The perceived risk of owning
corporate bonds fell from its highest level in two months as 10-
year U.S. Treasury notes pared their biggest weekly drop in more
than two years, according to credit-default swap traders who bet
on corporate creditworthiness.

Contracts based on $10 million in debt included in the CDX
North America Crossover Index fell $1,500 to $152,500 as of
11:40 a.m. in New York after rising in early trading by as much
as $4,000 to $158,000, according to Deutsche Bank AG. The index
includes 35 companies with investment- and speculative-grade
ratings. The index has risen $9,500 per $10 million this week,
the most since the last week of March.


Read more at Bloomberg Bonds News

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