Dec. 1 (Bloomberg) -- The cost of insuring against default on European corporate debt was little changed, according to traders of credit-default swaps.
The Markit iTraxx SovX Western Europe Index of swaps on 15 governments fell three basis points to 364 at 4:30 p.m. in London. A decline signals improvement in perceptions of credit quality.
Contracts on the Markit iTraxx Crossover Index of 50 companies with mostly high-yield credit ratings increased one basis point to 756.5, according to JPMorgan Chase & Co.
The Markit iTraxx Europe Index of 125 companies with investment-grade ratings fell 1.25 basis points to 183.25. The Markit iTraxx Financial Index linked to senior debt of 25 banks and insurers decreased 1.5 basis points to 296.5 and the subordinated index dropped seven to 520.
A basis point on a credit-default swap protecting 10 million euros ($13.5 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: Michael Shanahan
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