Cost to Insure Against U.S. Default on Debt at Record High
January 20th, 2009Via: Reuters:
The price investors pay to insure themselves against the U.S. government defaulting on its debt jumped to a record high on Monday, according to data provider CMA DataVision.
Five-year credit default swaps on U.S. Treasuries widened to 69.5 basis points from 61.1 basis points at the New York close on Friday, CMA DataVision said.
That means investors were paying $69,500 a year to insure against default on $10 million worth of bonds.
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