Public Administration News
Share
 |
Asia-Pacific Corporate Bond Risk Declines to Lowest in More Than Two Weeks |
| Source: |
bloomberg.com |
| Source Date: |
Thursday, July 08, 2010 |
| Focus: |
Citizens’ Service Delivery
|
| Created: |
Jul 12, 2010 |
|
Business ExchangeTwitterDeliciousDiggFacebookLinkedInNewsvinePropellerYahoo! BuzzPrint The cost of protecting Asia-Pacific bonds from default fell to the lowest in more than two weeks, according to traders of credit-default swaps.
The Markit iTraxx Asia index of swaps on 50 investment- grade borrowers outside Japan dropped 4 basis points to 127 basis points as of 8:09 a.m. in Hong Kong, according to Credit Agricole CIB. That’s the lowest since June 22, according to CMA DataVision in New York.
The Markit iTraxx Australia index decreased 6 basis points to 122.5 basis points as of 9:45 a.m. in Sydney, also to the lowest in more than two weeks, according to Nomura Holdings Inc. and CMA data. The Markit iTraxx Japan index fell 5 basis points to 127 basis points as of 8:49 a.m. in Tokyo, the least since June 22, Morgan Stanley and CMA prices show.
Credit-default swap indexes are benchmarks for protecting bonds against default and traders use them to speculate on credit quality. An increase suggests deteriorating perceptions of credit quality and a drop shows improvement.
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.
|
|
|
|
|
|
 Tag This |
Asia-Pacific Corporate Bond Risk Declines to Lowest in More Than Two Weeks Business ExchangeTwitterDeliciousDiggFacebookLinkedInNewsvinePropellerYahoo BuzzPrint The cost of protecting Asia-Pacific bonds from default fell to the lowest in more than two weeks according to traders of credit-default swaps
 Tell A Friend |
|
 del.icio.us digg this Slashdot |
| Rate: |
0 ratings
|
Views: |
235 |
| Comments: |
0 |
Favorited: |
0 |
Bookmarked: |
0 |
Tagged: |
0 |
|
|
|
|