Asia-Pacific Bond Risk Falls, Credit-Default Swap Prices Show
July 22 (Bloomberg) -- The cost of protecting Asia-Pacific corporate and sovereign bonds from default dropped, according to traders of credit-default swaps.
The Markit iTraxx Japan index decreased 2.75 basis points to 118.25 basis points as of 9:36 a.m. in Tokyo, Deutsche Bank AG prices show. That's on course for the lowest close since March 22, according to CMA, which is owned by CME Group Inc. and compiles prices quoted by dealers in privately negotiated markets.
The Markit iTraxx Australia index fell 4.5 basis points to 114.5 basis points as of 10:35 a.m. in Sydney, according to Deutsche Bank. The Markit iTraxx Asia index of 50 investment- grade borrowers outside Japan dropped 5 basis points to 115 basis points as of 8:36 a.m. in Hong Kong, prices from the Frankfurt-based bank show.
Credit-default swap indexes are benchmarks for protecting bonds against default and traders use them to speculate on credit quality. A drop signals improving perceptions of creditworthiness, while an increase suggests the opposite.
The swap contracts pay the buyer face value in exchange for the underlying securities if a borrower fails to meet its debt agreements. A basis point is 0.01 percentage point.
Credit Default Swap Pricing - News
July 22 (Bloomberg) -- Credit-default swaps traders seeking to profit from concern that the US will default as lawmakers clash over the debt ceiling are betting a missed payment may trigger a payout of about 22 times the cost of the contracts.
The Markit iTraxx Asia index of 50 investment- grade borrowers outside Japan dropped 5 basis points to 115 basis points as of 8:36 am in Hong Kong, prices from the Frankfurt-based bank show. Credit-default swap indexes are benchmarks for protecting
Fitch Ratings said Greece faces “restricted default'' following the agreement. Credit-default 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.
Credit-default swaps on France surged 9 basis points to a record 123 and Germany climbed 4 to 64, the highest since March 2009, according to CMA prices at 4:30 pm in London. Greece, Ireland, Italy, Portugal and Spain also rose to records, helping push
The cost of insuring Treasuries for five years with credit- default swaps fell 0.2 basis point to 53 basis points, according to data provider CMA, which is owned by CME Group Inc. and compiles prices quoted by dealers in the privately negotiated
State Bank default swaps hit one year high on rates — Clearing and ...
: Investors are paying the most in a year to protect against a default by India’s biggest banks as financial firms call on policy makers to halt a record increase in interest rates that is hampering lending growth.
The cost of insuring debt of State Bank of India against non-payment with five-year credit-default swaps rose 20 basis points this month to 208 on July 18, the highest since July 2010, according to data provider CMA, which is owned by CME Group and compiles prices quoted by dealers in privately negotiated markets. Swaps for ICICI Bank jumped by a similar amount to 253. Contracts on Bank of China rose 12 to 170 in the same period.
Lenders asked the central bank this week to hold its repurchase rate at 7.5% after 10 increases in the past 16 months cut credit growth to a nine-month low of 19.6%, according to the Indian Banks Association.
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