Thursday, June 21, 2007

Corporate Debt Risk Indexes Retreat as Merrill Eases Bear Stearns Concerns

(Bloomberg) -- The perceived risk of owning
corporate debt fell after surging earlier today on concerns that
the paralysis of two hedge funds run by Bear Stearns Cos. may
cause a chain reaction that sparks losses for other hedge funds
and the banks that finance them.

Credit-default swaps based on $10 million of debt in the
CDX North America Crossover Index, which had surged as much as
$10,000 to a nine-month high of $179,000 fell back to $167,000
at 2:50 p.m. in New York, according to Deutsche Bank AG. In
Europe, the benchmark iTraxx Crossover Index retreated to
211,000 euros ($289,000), after rising as much as 16,000 euros
to 216,000 euros, the biggest one-day jump in three months.


Read more at Bloomberg Bonds News

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