European corporate default insurance costs jump By Reuters
(Reuters) – Credit default swap indices measuring the cost of insuring against defaults on European corporate bonds jumped on Monday to their highest since early December as stock markets tumbled on the prospect of a Russian attack on Ukraine.
The spread on the iTraxx European Crossover Index, which measures the cost of insuring exposure to a basket of lower-quality European companies, jumped nearly 13 basis points to 280 basis points, the highest since December 6.
The spread on Europe’s iTraxx index, which measures the cost of insuring against high-quality corporate bond defaults, widened nearly 3 basis points to almost 58 basis points, also the higher since December 6.
CDS for junk debt have risen on average by more than 40 basis points since the start of 2022 while those for high-quality corporate bonds have risen by around 10 basis points.
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