(Bloomberg) -- The global credit market rout caused
by losses on U.S. subprime securities may spark an increase in
corporate defaults and a slump in share prices, according to
Royal Bank of Scotland Group Plc.
The cost of protecting debt using credit-default swaps more
than doubled since the start of June with the iTraxx Crossover
Series 7 Index of contracts on 50 European companies soaring to
365,000 euros ($508,000) for every 10 million euros of bonds.
The cost may climb as high as 500,000 euros, said Royal Bank's
chief credit strategist Bob Janjuah in London.
Read more at Bloomberg Bonds News
by losses on U.S. subprime securities may spark an increase in
corporate defaults and a slump in share prices, according to
Royal Bank of Scotland Group Plc.
The cost of protecting debt using credit-default swaps more
than doubled since the start of June with the iTraxx Crossover
Series 7 Index of contracts on 50 European companies soaring to
365,000 euros ($508,000) for every 10 million euros of bonds.
The cost may climb as high as 500,000 euros, said Royal Bank's
chief credit strategist Bob Janjuah in London.
Read more at Bloomberg Bonds News
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