The cost of insuring against default on Greek, Irish and Portuguese government debt surged to records, driving a gauge of sovereign bond risk to an all-time high, on concern Europe’s deficit crisis is worsening.
Credit-default swaps on Greece soared 280 basis points to 2,050, while Ireland rose 36 to 802 and Portugal climbed 17 to 814, according to CMA prices at 3:30 p.m. in London. The Markit iTraxx SovX Western Europe Index of swaps on 15 governments jumped 11 basis points to 236.5. An increase signals deteriorating perceptions of credit quality.
Businessweek
