The cost of insuring against default on European sovereign and corporate debt was little changed, according to BNP Paribas SA.
The Markit iTraxx SovX Western Europe Index of credit- default swaps on 15 governments rose two basis points to 282 at 8:14 a.m. in London. An increase signals deterioration in perceptions of credit quality.
Contracts on the Markit iTraxx Crossover Index of 50 companies with mostly high-yield credit ratings fell 1.5 basis points to 678.5. The Markit iTraxx Europe Index of 125 companies with investment-grade ratings was little changed at 144 basis points.
The Markit iTraxx Financial Index linked to senior debt of 25 banks and insurers rose 1.25 basis points to 251.25 and the subordinated index climbed two to 408.
A basis point on a credit-default swap protecting 10 million euros ($13.1 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.
To contact the reporter on this story: Abigail Moses in London at Amoses5@bloomberg.net
To contact the editor responsible for this story: Paul Armstrong at Parmstrong10@bloomberg.net