Thursday, June 21, 2007

Corporate Debt Risk Jumps Worldwide on Concern Over Bear Stearns Funds

(Bloomberg) -- The perceived risk of owning
corporate debt soared worldwide on concern that the collapse 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 of 35 companies surged as much as
$10,000 to a nine-month high of $179,000, according to Deutsche
Bank AG. In Europe, the iTraxx Crossover Series 7 Index of 50
European companies jumped as much as 16,000 euros ($21,400) to
216,000 euros, the biggest one-day rise in three months,
according to Deutsche Bank.


Read more at Bloomberg Bonds News

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