Thursday, 21 June 2007

Corporate Debt Risk Indexes Retreat as Merrill Eases Bear Stearns Concern

(Bloomberg) -- The perceived risk of owning
corporate debt fell from a nine-month high reached in early
trading today as concerns eased that the paralysis of two hedge
funds run by Bear Stearns Cos. may cause a chain reaction that
sparks losses across the credit markets.

Credit-default swaps based on $10 million of debt in the
CDX North America Crossover Index, surged as much as $10,000 to
a nine-month high of $179,000 before ending the day little
changed at $168,500, according to Deutsche Bank AG. In Europe,
the benchmark iTraxx Crossover Index retreated to 211,000 euros
($289,000) after rising 16,000 euros to 216,000 euros.


Read more at Bloomberg Bonds News

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