Tuesday, August 18, 2009

Corporate Bond Risk Jumps to Three-Week High on Economy Concern

The cost of protecting corporate bonds from default rose on concern a five-month credit market rally is “unsustainable” as Japan’s economy grew less than economists estimated and U.S. consumer confidence fell.

Credit-default swaps on JPMorgan Chase & Co. and Goldman Sachs Group Inc. climbed to the highest levels in a month, according to CMA DataVision. Contracts tied to U.S. investment- grade debt rose to a more-than-three-week peak, while those on a European index of corporate securities increased to the most since July 29. (more)

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