Australian Corporate Bond Risk Rises, Credit-Default Swaps Show
By Laura Cochrane
Aug. 21 (Bloomberg) -- The perceived risk of owning Australian corporate bonds rose, credit-default swaps show.
Contracts on the iTraxx Australia Series 7 Index, a benchmark for protecting bonds against default and speculating on credit quality, rose 1 basis point to 43 basis points at 10.55 a.m. in Sydney, according to prices from JPMorgan Chase & Co. This means it costs $43,000 to protect $10 million of corporate debt from default.
Credit-default swaps are financial instruments based on bonds or loans. A rise indicates deteriorating investor perceptions of credit quality.
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