The cost of insuring corporate and sovereign bonds in the Asia-Pacific region against non-payment dropped, according to credit-default swap traders.
The Markit iTraxx Asia index of 40 investment-grade borrowers outside Japan fell 3 basis points to 152.5 basis points as of 8:52 a.m. in Singapore, Royal Bank of Scotland Group Plc prices show. The measure is set to close at its lowest level since July 2, according to data provider CMA.
The Markit iTraxx Australia index declined 2 basis points to 129 as of 10:18 a.m. in Sydney, National Australia Bank Ltd. prices show.
The benchmark is poised for its lowest close since June 19, according to CMA, which is owned by McGraw-Hill Cos. and compiles prices quoted by dealers in the private market.
The Markit iTraxx Japan index decreased 0.5 of a basis point to 102.5 as of 9:17 a.m. in Tokyo, according to Citigroup Inc.
The gauge, which has ranged from 74 to 148.1 this year, is on track to fall 7.3 basis points this month, CMA data show. Credit-default swap indexes are benchmarks for insuring bonds against default and traders use them to speculate on credit quality.
A drop signals improving perceptions of creditworthiness, while an increase suggests the opposite. The swap contracts pay the buyer face value in exchange for the underlying securities if a borrower fails to meet its debt agreements.
bloomberg.com
The Markit iTraxx Asia index of 40 investment-grade borrowers outside Japan fell 3 basis points to 152.5 basis points as of 8:52 a.m. in Singapore, Royal Bank of Scotland Group Plc prices show. The measure is set to close at its lowest level since July 2, according to data provider CMA.
The Markit iTraxx Australia index declined 2 basis points to 129 as of 10:18 a.m. in Sydney, National Australia Bank Ltd. prices show.
The benchmark is poised for its lowest close since June 19, according to CMA, which is owned by McGraw-Hill Cos. and compiles prices quoted by dealers in the private market.
The Markit iTraxx Japan index decreased 0.5 of a basis point to 102.5 as of 9:17 a.m. in Tokyo, according to Citigroup Inc.
The gauge, which has ranged from 74 to 148.1 this year, is on track to fall 7.3 basis points this month, CMA data show. Credit-default swap indexes are benchmarks for insuring bonds against default and traders use them to speculate on credit quality.
A drop signals improving perceptions of creditworthiness, while an increase suggests the opposite. The swap contracts pay the buyer face value in exchange for the underlying securities if a borrower fails to meet its debt agreements.
bloomberg.com
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