Oct. 26 (Bloomberg) -- The cost of insuring against default on European corporate debt was little changed, according to traders of credit-default swaps.
Contracts on the Markit iTraxx Crossover Index of 50 companies with mostly high-yield credit ratings rose two basis points to 721 basis points, according to JPMorgan Chase & Co. at 4:30 p.m. in London. An increase signals worsening perceptions of credit quality.
The Markit iTraxx Europe Index of 125 companies with investment-grade ratings was down 0.5 at 175 basis points. The Markit iTraxx Financial Index linked to senior debt of 25 banks and insurers was unchanged at 243 basis points and the subordinated gauge was eight lower at 469.
The Markit iTraxx SovX Western Europe Index of swaps on 15 governments was little changed at 334 basis points.
A basis point on a credit-default swap protecting 10 million euros ($13.8 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.
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