Tuesday, May 25, 2010

CDS Index Rises 6%

The cost of protecting U.S. corporate debt with credit default swaps is climbing as the lack of liquidity in the global financial system becomes obvious.

The main index of investment-grade credit default swapsis up over 6 percent to 131 basis pointsfrom 123 basis points at Monday's close, according to Markit Intraday.  The U.S. credit default swap index has widened by nearly 43 basis points this month.

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