Thursday, June 21, 2007

Corporate Bond Risk Rises on Concern Over Bear Stearns Hedge Fund Losses

(Bloomberg) -- The perceived risk of owning
European corporate bonds rose the most in two weeks on concern
over losses at hedge funds run by Bear Stearns Cos.

Credit-default swaps based on 10 million euros ($13
million) of debt included in the iTraxx Crossover Series 7 Index
of 50 European companies increased 9,000 euros to 209,000 euros,
according to Deutsche Bank AG. The contracts are used to bet on
a company's ability to repay debt and an increase in the cost
indicates worsening perceptions of credit quality.


Read more at Bloomberg Bonds News

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