Monday, June 25, 2007

Corporate Bond Risk Jumps in Europe on Concern Over U.S. Housing Market

(Bloomberg) -- The risk of owning European company
bonds jumped to the highest in almost three months on concern a
slowing U.S. housing market will hit global corporate earnings
growth, according to traders of credit-default swaps.

Contracts based on 10 million euros ($13 million) of debt
included in the iTraxx Crossover Series 7 Index of 50 European
companies increased 7,500 euros to 222,000 euros, the highest
since April 5, according to JPMorgan Chase & Co. An increase in
the cost of the contracts, used to bet on a company's ability to
repay debt, shows a deteriorating outlook for credit quality.


Read more at Bloomberg Bonds News

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