(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
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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