Credit de­fault swaps at new record high

Kathimerini English - - Business & Finance -

The cost of in­sur­ing against de­fault on Greek gov­ern­ment debt surged to new records yes­ter­day.

Credit de­fault swaps on Greece soared 435 ba­sis points to 2,189, ac­cord­ing to CMA mar­ket data. The Markit iTraxx SovX West­ern Europe In­dex of swaps on 15 gov­ern­ments jumped nine ba­sis points to 235. An in­crease sig­nals de­te­ri­o­rat­ing per­cep­tions of credit qual­ity. In­vestors are bet­ting Greece will de­fault if it’s un­able to pass the aus­ter­ity mea­sures needed to qual­ify for the next in­stall­ment of in­ter­na­tional aid.

In­vestor con­fi­dence in Ir­ish debt was also hurt yes­ter­day by com­ments from Ir­ish Fi­nance Min­is­ter Michael Noo­nan that se­nior bond­hold­ers should share in the losses of An­glo Ir­ish Bank Corp and Ir­ish Na­tion­wide Build­ing So­ci­ety, re­vers­ing a pol­icy of pro­tect­ing own­ers of se­nior se­cu­ri­ties.

Credit de­fault swaps on Ire­land rose 37 ba­sis points to 799.

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