According to foreign media report today, used to protect corporate bonds from default fell to the cost of Monday the lowest level since the six-week, as investors Greek sovereign debt crises will be inhibited and Dubai will be the issue of further debt restructuring optimism increased.
JP Morgan Chase, according to the pricing shown, Markit iTraxx Crossover Index Index today fell 10 basis points to 415 basis points, the highest since January 19 the lowest level since. The index used to track the euro area 50 has a high-yield, high risk credit rating of the company’s cost of default protection on bonds, and its decline shows that investors view of credit quality has improved. At the same time, Asia-Pacific credit default swaps used to track the index were lower.
In the Greek government last week sold 50 billion euros (6.8 billion U.S. dollars) in treasury bonds, and through a total of 4.8 billion euros (about 6.5 billion U.S. dollars) plan to reduce the deficit after investors worried about the Greek sovereign debt defaults mood declined. German Chancellor Angela Merkel (Angela Merkel) to these latest measures in the Government of Greece known as the “brave move”; French Prime Minister Nicolas Sarkozy (Nicolas Sarkozy) said that the euro zone has already done the rescue of Greece preparation.
New York Asset Management Asset Management’s corporate credit department heads Qiao Erle Covington (Joel Levington), said: “The EU and Germany have been involved and said: ‘We will support the Greek’, the situation seems to have been wise control. ”
According to the London price of credit default swap pricing service company CMA Datavision show that the five-year period for the protection of Dubai bond credit default swaps fell 20 basis points to 487 basis points, marking the lowest level since five weeks; Greek bond credit default swaps fell 12 basis points to 284 basis points, the highest since January 12 the lowest level since.
Credit default swaps are derived from the credit card out of a financial derivative products, can be seen as a financial asset default insurance. Such contracts will be approved by the creditors sell the debt risk, the contract price is a premium. In the credit default swaps period, the price of one basis point is equivalent to 1000 U.S. dollars per year, can protect 10 million U.S. dollars of bonds in the five years from breach of contract.
According to Bank of America, Merrill Lynch & Co. data show that investors hold corporate bonds rather than government bonds, the additional revenue required by the March 5 rate fell 2 basis points to 163 basis points, the highest since January 21 the lowest level since.