Oct. 4 (Bloomberg) -- The cost of insuring against default on European corporate debt rose, according to traders of credit- default swaps.

Contracts on the Markit iTraxx Crossover Index of 50 companies with mostly high-yield credit ratings increased 25.5 basis points to 883.5, according to JPMorgan Chase & Co. prices at 7:30 a.m. in London.

The Markit iTraxx Europe Index of 125 companies with investment-grade ratings was up 6.75 at 213.25 basis points. The Markit iTraxx Financial Index linked to senior debt of 25 banks and insurers rose 11 basis points to 300 basis points and the subordinated index was up 13 at 555.

A basis point on a credit-default swap protecting 10 million euros ($13.2 million) of debt from default for five years is equivalent to 1,000 euros a year. Swaps pay the buyer face value in exchange for the underlying securities or the cash equivalent should a borrower fail to adhere to its debt agreements.

--Editor: Paul Armstrong

To contact the reporter on this story: Michael Shanahan in London at Mshanahan3@bloomberg.net

To contact the editor responsible for this story: Paul Armstrong at Parmstrong10@bloomberg.net