(Bloomberg) -- The perceived risk of owning
Australian dollar corporate bonds rose as losses at two hedge
funds run by Bear Stearns Cos. raised concerns that the
creditworthiness of other U.S. securities firms which sell debt
in Australia may be hurt.
Credit-default swaps based on $10 million of debt in the
iTraxx Australia Series 7 Index of 25 companies rose $330 to a
six-week high of $27,000 at 2 p.m. in Sydney, according to ABN
Amro Holding NV. An increase in the five-year contracts, used to
speculate on the ability of bond sellers to repay debt, typically
suggests deteriorating credit quality.
Read more at Bloomberg Bonds News
Australian dollar corporate bonds rose as losses at two hedge
funds run by Bear Stearns Cos. raised concerns that the
creditworthiness of other U.S. securities firms which sell debt
in Australia may be hurt.
Credit-default swaps based on $10 million of debt in the
iTraxx Australia Series 7 Index of 25 companies rose $330 to a
six-week high of $27,000 at 2 p.m. in Sydney, according to ABN
Amro Holding NV. An increase in the five-year contracts, used to
speculate on the ability of bond sellers to repay debt, typically
suggests deteriorating credit quality.
Read more at Bloomberg Bonds News
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